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Author: 



Rubinow, Isaac Max 



Title: 



Studies in workmen's 
insurance, Italy, Russia 

Place: 

New York 

Date: 

1911 



COLUMBIA UNIVERSITY LIBRARIES 
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MASTER NEGATIVE * 



ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD 



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Rubinow, Isaac Max, 1875- 

Studies in workmen's insurance, Italy, Russia, Spain 

... New York, 1911. 

4 p. 1., 

Arprr'H:, p. 1699-2376, i6] p. incl. tables. 23'^". 

Thesis (ph. d.) — Columbia university. 

Vita. 

Bibliography: p. 2010-2013. 2314-2318, 2375-2376. 

List of the author's publications : [4] p. 

"The studies offered herewith represent the author's contribution to the 
Twenty-fourth annual report of the United States commissioner of labor 
on "Workmen's insurance and compensation systems in Europe." 



1. Insurance, Industrial. 



Title from Columbia Univ. 



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LIBRARY 




School of Business 



School of Rnsinr^ss Library 
Columbiii Uiiiveraity 



JUN 19 1941 



Given by 

John Bates Clark 



♦> 



5TUD1L5 



IN 



WORKMEN'S INSURANCE: 

ITALY, RUSSIA, SPAIN 



BY 



I. M. RUBINOW 



Chief Statistician of the Ocean Accident and Guarantee Corporation, 
Formerly Statistical Expert, United States Bureau of Labor 



A DISSERTATION 

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS 
FOR THE DEGREE OF DOCTOR OF PHILOSOPHY 

« 

IN the 

Faculty of Political Science, 
Columbia University 



i^ 



New York 
1911 



Prom Lib. of 
Jolxa Bates Clark 
qot.l5,ld40 



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PRLFACL 



The studies offered herewith, on Workmen's Insurance in 
Italy, Russia and Spain, represent, — together with a considerable 
portion of the study of the same problem in France, — the author's 
contribution to the Twenty-Fourth Annual Report of the United 
States Commissioner of Labor on "Workmen's Insurance and 
Compensation Systems in Europe." 

This explains the nature of treatment of the material, w^hich 
is descriptive rather than critical, — a limitation under which 
most government reports necessarily labor, especially when 
dealing with foreign economic and legal conditions. It would 
indeed be unfortunate if the writer's personal views and con- 
victions were permitted to create grave international conflicts. 

It may be added that the same circumstance has determined 
the somewhat unfortunate typographical form of this book, 
showing itself in the matter of running page headings, pagina- 
tion and numbering of chapters, all of which the fastidious 
reader will not have failed to notice. It is the author's mis- 
fortune, rather than fault, that in an alphabetic arrangement of 
European countries, Norway— the domain of another student- 
intruded between Italy and Russia with the malicious intent of 
breaking down the continuity of pagination. 

And finally, what is more important, the same circum- 
stance explains the somewhat accidental selection of the coun- 
tries, which— in the process of distribution of an enormous task 
among several fellow workers— was determined by such con- 
siderations as knowledge of certain languages and some famil-' 
iarity with the conditions of the countries treated. It was the 
author's fate to be left to the less familiar hunting grounds. 

It is hoped, however, that some unity of thought may be 
found in the various chapters, and that there need be no apology 
for presenting them together. The problem of social insurance 
which suddenly has acquired such tremendous importance in 
this country, is mainly discussed upon the basis of German and 



English experience; the first because of tlie remarkable com- 
pleteness and unity of its system, the latter because of the nat- 
ural tendency to follow British precedents. Much less known 
are the results of Romance and Slavic experience. The three 
countries brought here together in one volume show the work- 
ings of many difllerent institutions and forms of insurance, com- 
pulsory as well as voluntary, private as well as state. Thc^y show 
how unwilling were many of the countries in adapting the (ier- 
man ideas of compulsion. They also show how insistent is the 
demand of social progress that they should eventually do so. 
If as a result of a study of these chapters, the reader may come 
to the conclusion, that the trend everywhere seems to l)e fiom 
voluntary to compulsory insiu'ance, that success of all forms of 
social insurance is almost directly proportionate to the degree 
of compulsion, then it is hoped this conclusion will not be as- 
cribed to the author's leaning to the compulsory principle, an- 
nounced in some desultory way in magazine articles more than 
eight years ago, but to an accurate and impartial presentation 
of the facts and figures collected during three years of patient 
application. 



1. M. R. 



New York City, 
November, 1911. 




II 



TABLL OF CONTLNT5 



Workingineii's Insurance in Italy I(i!)7-2(I13 

Introduction 1G9U-17UI 

Accident Insurance 1701-1827 

History of Accident Insurance Legislation 1702-1713 

Legislation in Force 1713-1733 

Application of the Law 1733-1744 

The National Accident Insurance Institution 1744-1782 

The Compulsory Mutual Accident Insurance Associa- 
tion for Sicilian Sulphur Mines 1 782-1 7!I2 

Compulsory Association for Insurance of Seamen. . . . 1793 

Other Accident Insurance Associations 1 703-1 791> 

Proposed Reforms 1799-180() 

Statistics of Industrial Accidents 1806-1827 

Sickness Insurance 1828-1802 

History 1828-1832 

Provisions of the Law of April 15, 1880 1832-1835 

Statistics of Mutual Benefit Societies 1835-1849 

Proposed Reforms 1850-1851 

Maternity Insurance 1851-1802 

Old Age and Invalidity Insurance 1802-1904 

National Old Age and Invalid Insurance Institution. . 1802-1899 
Compulsory Old Age Insurance for certain State 

Employees 1899-1904 

Unemployment Insurance 1904-1934 

Unemployment Statistics 1904-1909 

Unemployment Relief by Labor Unions 1904-1914 

Private IJnemployment Insurance 1914-1930 

Unemployment Benefits by Trade Associations 1930-1933 

Railroad Pensions and Mutual Aid Institutions 1935-2099 

Introduction 1935-1941 

State Railroad Pension Fund 1941-1901 

State Railroad Mutual Benefit Society 1902-1990 

Provident Institute of the State Railroads 1990-2001 

Law of July 9, 1908 2001-2004 

Conclusions 2004-2009 

Bibliographv 2010-2013 



Workmen's Insurance in Russia 2085-2318 

Introduction 2087-2092 

Accident Insurance 2092-2206 

Employers' Liability 2092-2097 

History of Compensation Legislation 2097-2102 

Workmen's Compensation — Present Status 2102-2119 

Special Provision for State Employees 2119-2127 

Statistics of Operation of the Law 2127-2137 

Private Voluntary Accident Insurance 2137-2150 

Proposed Reforms 2150-2155 

Statistics of Accidents 2156-2206 

Sickness Insurance 2206-2254 

Medical Aid 2207-2229 

Financial Assistance 2229-2243 

Proposals for Compulsory Sickness Insurance 2243-2254 

Old Age and Invalidity Insurance 2254-2313 

State Miners' Brotherhoods 2255-2259 

Railroad Employees' Pension Funds 2259-2288 

Pension Funds for Liquor Monopoly 2288-2296 

Pension Fund of Other Government Employees.... 2296-2299 

Pension Fund of the Zemstvos 2299-2305 

Efforts for Reform 2306-2313 

Bibliography 2314-2318 

Workmen's Insurance in Spain 2319-2376 

Introduction 2321-2322 

Accident Insurance 2322-2354 

History 2322-2328 

Legislation in Force 2328-2342 

Proposed Reforms 2342-2350 

Statistics of Industrial Accidents 2350-2354 

Sickness Insurance 2355-2359 

Commercial Insurance Companies 2355-2356 

Mutual Benefit Societies . 2356-2359 

Old Age Insurance 2359-2372 

The National Institute : 2360-2369 

Private Voluntary Old Age Insurance 2369-2372 

Railroad Employees' Funds 2372-2373 

Life Insurance in Connection with Workmen's Dwellings 2373-2375 

Bibliography 2375-2376 



r 



WORKMEN'S INSURANCE IN ITALY 



I . 
I 



CHAPTER VII. 

WOEKMEIT'S IirSURAWCE IN ITALY. 
INTRODUCTION. 

The beginnings of workmen's insurance in Italy may be traced to 
voluntary cooperative organizations. These organizations provided 
for mutual help in a great mauy different emergencies, but primarily 
for sick benefits. They were known in the eighteenth century, but 
began to develop rapidly in the seventies of the nineteenth century, and 
by 1886 their importance was sufficiently great to cause the adoption of 
a special law regulating them to some extent. A few years before, by 
the law of 1883, the National Accident Insurance Institution was 
authorized for voluntary insurance against accidents. This was a 
private institution, formed for that purpose by a combination of 10 
savings banks, but under government supervision. 

For the next fifteen years the question of workmen's insurance in 
all its phases was under continuous discussion, but very Uttle of 
actual legislation was accomphshed. On March 17, 1898, the acci- 
dent insurance law was passed, estabhshing what is practicaUy com- 
pulsory accident insurance, though with freedom of selection of the 
earner of the insurance, for a considerable portion of Itahan manufac- 
tunng industry and minmg. In the same year the national institu- 
tion for voluntary old-age and mvahdity insurance was orgauized. 

These two laws of 1898 present the essential legislative acts of Italy 
in connection with workmen's insurance. The accident insurance 
system was considerably extended and amended by the act of June 
20, 1903, the codified text of the law being pubUshed January 31, 1904, 
and the system of voluntary old-age and invahdity insurance wa^ 
modified by the amending acts of July 7, 1901, and of May 20,1907. 
But no essentially new principles were introduced by any of 'these 
amending acts. 

fv.^!f*^/^^^^ ^^^ ^^^^ accomphshed by the Italian Government in 
the held of sickness insurance in comparison with accident and old- 
age insurance. The only measure enacted of any importance is the 
law of April 15, 1886, concerning recognition or mcorporation of the 
voluntary private mutual benefit societies wliich concern themselves 
mamly but not exclusively with sickness insurance. 
^ Maternity insurance, which may be considered as a form of sickness 
insurance, has been earnestly discussed m Italy for over a decade. 

1699 



1700 



BEPOET OF THE COMMISSIONER OF LABOB. 



The question was raised by a few individuals early in the last decade 
of the nineteenth century, and the influence of their agitation in pri- 
vate orgamzations was powerful enough to call forth a government 

^- uV^^' f ^^^'^^ ^^ ^ national maternity insurance institution. 
Ihis bill, with some modifications, became a law on July 17, 1910 

An explanation of the slow development of social insurance in 
Italy may be found in the general economic status of the country 
The occupational statistics of Italy disclose the fact that it is still 
largely an agricultural country. 

In 1901 the number of persons employed in the manufacturing 
mdustnes (mcluding mining) in Italy did not exceed 16 per cent of 
the total population over 9 years of age, or about 25 per cent if only 
persons gainfully employed be taken into consideration. Agricul- 
ture claimed 38 per cent of the total adult population, or nearly 60 
per cent of that part which was gainfully employed. The occupa- 
tional statistics of the census of 1882 and of 1901 were presented 
according to different systems of classifications and are scracely com- 
parable; nevertheless a comparison of the statistics for the two years 
indicates an absence of any very large and raj^id development of 
mdustnal employment. 

NUMBER AND PER CENT OF PERSONS OVER 9 YEARS OF AGE IN ITALY, CLASSIFIED 
BY INDUSTRY AND SEX, CENSUSES OF 1882 AND 1901. ^"^^^^'^'^^ 

[Source: Annuario Statlstico ItaUano, 1905-1907, VoL I, p. 111.] 



Industry, etc. 



Agriculture, fishing, etc 

Mining, metallurgy, stone quarrying,' etc! 

Manufacturing, etc.: 

Building 

Textiles 

Clothing "!.'!!!!!!!.'! 

Food products ....!!!!!!! 

Wood and straw working. 

All other industries 



Census of January 1, 1882. 



Males. 



Total manufacturing, etc 



Transportation 

Commerce and exchange. . . 

Public undertakings ,[," 

Domestic service, private employ" etc 

Public administration 

Professions 

Defense of the land 

Persons living from revenues! ! ! 

Persons supported by families. .'. 

Persons supported by pubUc or private charity, 

Persons of unknown occupation! ! !!!!!!!!!!!!!!!!!! 



6,513,545 
399,920 



518,876 
137,476 
494,432 
267,938 
307,802 
152,520 



Females. 



3,101,163 
7,915 



67,914 
1,213,978 
498. 523 
55,615 
73,400 
26,554 



Total. 



Numbw. 



Total. 



1,879.044 

310,519 
325,716 
118,298 
306,822 
164,962 
271,652 
160, 155 
427,456 
554,480 

101,115 
725,284 



11,258,968 



1,935,984 

2,664 

71,377 

71,280 

413,022 

2,400 
95, 470 



8.614,708 
407,835 



586,790 
1,351,454 
992,955 
323,553 
381,202 
179,074 



Percent. 



38.20 
1.81 



535,425 
4,103,608 

96,161 
855,691 



11,292,158 



3,815,028 

313, 183 
397,093 
189,578 
719,844 
167,362 
367, 122 
160, 155 
962,881 
4,658,086 

197,276 
1,580,975 



2.60 
5.99 
4.40 
L44 
1.69 
.79 



16.91 



22,551,126 



L39 
L76 

.84 
3.19 

.74 
L63 

.71 

4.27 

20.66 

.88 
7.01 



100.00 



OHAPTEB VII. — WOEKMEN's INSURANCE IN ITALY. 1701 

NUMBER AND PER CENT OF PERSONS OVER 9 YEARS OF AGE IN FTALY CLAfiSIFrFn 
^Y INDUSTRY AND SEX, CENSUSES OF 1882 AND 1901-SnSeS. ^"^ 



Industry, etc. 



Agriculture, fishing, etc 

Mining, metallurgy, stone quarrying," etc 

Manufacturing, etc.: 
Building... 
Textiles .".*! 

Clothing !!!!!!!!! 

Food products !.!!!!! 

Wood and straw working. .. ! 

All other industries 



Census of February lo, 1901. 



Males. 



6,466,165 
646,222 




Females. 



3,200,302 
9,938 



Total. 



Number. 



9,666,467 
556,160 



Percent. 



38.08 
2.19 



Total manufacturing, etc 



Transportation 

Commerce and exchange!!! 

Public undertakings 

Domestic service, private' employ, "etc! ! " *" 

Pubhc administration... 

Professions 

Defense of the land. . ...!!! 

Persons living from revenues 

Persons supported by families. ."." 

^^^J^Sg^upported by pubUc or private " charity. 

Persons of unknown occupation !!!!!!!!!!!!!!! 



558,890 
121,479 
574,666 
270, 431 
343,139 
203,563 



Total. 



2,072,168 

416, 152 
468,918 
140, 769 
226,795 
173. 177 
274,084 
204,012 
301,596 
1,160,969 

80,178 
10,603 



5,906 

661, 774 

539,177 

44.069 

67,796 

42,764 



1,3 61,488 

7,639 

111,179 

52.087 

404,440 

5.064 

131,927 



564,798 
783,253 
1,113.843 
314.500 
410,935 
246,327 



299,156 
7,194,804 

66,675 



3,433,656 



2.22 
3.08 
4.39 
L24 
L62 
.97 



423,791 
580,097 
192,856 
631,235 
178,241 
406,011 
204,012 
600,752 
8,355,773 

146,853 
10,603 



12,541.808 i 12,844,699 



25,386,507 



13.52 

L67 
2.29 

.76 
2.49 

.70 
1.60 

.80 

2.37 

32.91 

.58 

.04 



100.00 



ACCIDENT INSURANCE. 
The present system of compulsory insurance of workmen against 
mdustnal accidents dates back to the law of March 17 1898 which 
went mto eflFect September 17, 1898. The law was ^onsiderablv 
amended by the act of June 29, 1903, and promulgated in codified 
form January 31, 1904, in which form it went into effect through a 
retroactive clause December 30, 1903. 

The system of compulsory insurance of workmen against acci- 
dents has been m existence in Italy for over ten years. The substi- 
tution of this system for the old system of employers' HabiHty was 
not estabhshed m a day. The first efforts of reform of the legal prin- 
ciple of employers' HabiUty began as early as 1879, and the history 
of these efforts, lasting almost uninterruptedly through two decades, 
gives interesting material for the study of the development from the 
one extreme of civil habiUty of the employer for his act to the other 
of an absolute nght of the employee to compensation in ca^e of indus- 
^^L^7t '}^^ '^''''^'P* ^^ ^"^^" ^^^' ^^ ^^^ collective responsi- 
lot of If! ^t"' u{ '^'^'' *^"^ ^^ i^^ individual employer for the 
proci^ '^ unavoidably connected with modem industrial 

repeats m Its articles 1152, 1153, 1157, and 1644 the provisions of 



1702 



REPORT OF THE COMMISSIONER OF lABOR. 



the French civil code concerning the responsibility of the employer 
for injuries to employees. These provisions differ little from the 
general principles of responsibiUty for injuries resulting from the 
acts of commission or omission of any person or his agents. 

HISTORY OF ACCIDENT INSirBANCE LEGISLATION. 

The conviction that the common law did not supply the necessary 
protection of the industrial worker, and that there was need for 
special protective legislation, found its first fonnal expression in the 
Chamber of Deputies in the bill covering workmen in the construc- 
tion of buildings, in mines, and workshops introduced March 17, 1879. 
The basic principle of this proposal was the transfer of the burden of 
proof from the employee to the employer. It proposed that the 
employers of labor in the industrial fields indicated should be respon- 
sible for injuries sustained by workmen through industrial accidents 
unless these accidents had been caused through the fault of the 
victim or through pure chance. This bill never came up for open 
discussion in the Chamber. 

A bill introduced in the Chamber of Deputies June 9, 1880, was 
based on the same principle of civil responsibility with change of the 
burden of proof, and in the main followed the lines laid down in the 
earlier proposal. This proposal did not meet with any greater suc- 
cess than of the pioneer proposal of 1879. 

The two preceding bills introduced were proposals of individual 
deputies and did not seem to have any considerable influence upon 
the membership of the Chamber. The numerous proposals made 
within the next two decades all came from the Government. The 
first of these government proposals was introduced in the Chamber 
of Deputies June 28, 1881. In the main, this first governmental pro- 
posal followed the Unes of its predecessors. It aimed to estabUsh the 
presumptive HabiHty of owners of land and buildings and employers 
of factories, mines, and quarries, in case of accidents caused by total 
or partial coUapse of buildings tluring construction, landslides, exca- 
vations, explosions, and similar occurrences, but not in all accidents, 
as provided in the preceding bill of 1880. 

A parUamentary commission appointed to examine into the gov- 
ernmental proposal as well as into that of the ])receding year, brought 
in its report November 24, 1881. This report entirely rejected the 
fundamental basis of all these proposals. It asserted that the pre- 
sumption of fault of the employer, and the consequent imposition 
upon him of the burden of proof, was a sudden, radical, and dangerous 
digression from the estabhshed principles of the ('ommim law. It 
admitted the justice of the responsibility where the cause of the acci- 
dent could be traced to the employer, but thought the presentation 
of proof to that effect essential. 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1703 

A new bill was introduced February 19, 1883, based, Uke the pre- 
ceding ones, upon the principles of transfer of the burden of proof, 
and also accepting the principle of joint responsibiUty of the owners 
and managers as indorsed by the parUamentary commission of 1881, 
to which it added the responsibiUty of the engineers and architects 
who direct the work. In other particulars the biU differed materially 
from the earUer biUs. It was broader in scope in that it included 
railroads. The biU provided that if the employer participated in the 
cost of insurance of his employees against industrial accidents, at least 
up to one-third of the premiums, the amount of the insurance must be 
deducted from the amount of indemnity granted by the court. This 
provision was to act as a stimulus for encouraging such insurance, 
with the employer's participation in the cost. It is evident that in 
introducing this clause the Government had in view its plan for the 
estabUshment of the national fund for insurance of worknien against 
accidents, which was accompUshed in the same year by the law of 
July 8, 1883. 

This second government biU was referred to a parUamentary com- 
mission, which reported it back April 8, 1884. Again the parUa- 
mentary commission refused to accept the reforms contained in the 
government proposal, insisting that they were at variance with the 
fundamental principles of civil law. Instead of the joint responsi- 
biUty of engineers, managers, employers, and owners for accidents it 
proposed a new biU containing specific regulations for the prevention 
of accidents in each industry and civil UabiUty only in case of non- 
compUance with such regulations, only such persons being Uable who 
were guilty of such noncompUance. It also introduced other Umita- 
tions, such as the exclusion of the railroads. This modified bill 
according to the report brought in by the commission was to pro- 
tect the rights and interests of workers without injuring any other 
rights and without prejudicing the industrial progress of the country. 

The original bill of 1883, as well as the amended bUl of the parlia- 
mentary commission, came up for an extended discussion in the Cham- 
ber of Deputies and was adopted by the Chamber June 15, 1885. In 
passing this bill the Chamber included many important amend- 
ments, in which the influence of the German insurance system could 
be seen. The purpose of these amendments was to stimulate further 
the insurance of employees b^ the employers, though a voluntary 
system was thought preferable and better adapted to Italian con- 
ditions than the compulsory system established in Germany, and for 
the purposes of such voluntary insurance the National Insurance 
Fund already existed. 

The bill as passed by the Chamber of Deputies finally came up 
for discussion in the Senate, when a report was made by a senate 
commission on April 2, 1886. The majority of the senate commis- 
67725*'— VOL 2—11 14 



1704 



REPORT OF THE COMMISSIONER OF LABOR. 



sion disagreed entirely with the fundamental principle of the bill 
and presented a counter project, which made the owners, em])loyer8, 
etc., responsible for the accident only when these persons had not 
conformed to all requirements as to prevention of accidents. The 
bill and the counter proposition were thoroughly discussed, but led 
to no practical results. 

These discussions in the Senate closed the first period of the history 
of workmen's insurance against accidents in Italy — a period based 
upon the strengthening of the civil responsibility of the individual 
employer (employers' liabihty), with leanings during the last two 
years of the period toward a system of voluntary insurance. 

A new period was ushered in by the new imnister of commerce 
and agriculture, requesting Prof. Carlo F. Ferraris to pr<»[>are a 
report covering the entire subject of insurance of workmen against 
accidents. The selection was significant, as l^rofessor Ferraris was 
known as a believer in the systepi of obligatory insurance. In his 
report to the commission (^) Professor Ferraris proposed a system 
based upon obligatory insurance, totally at the expense of the 
employers, covering all cases of accidents, inchiding those caused by 
the negligence of the victim himself, and he combined with this 
system of obligatory insurance preventative measures, so as to 
reduce the frequency of accidents. Notwithstanding a very violent 
opposition, the proposal of Doctor Ferraris was accepted by the 
consultative commission with certain slight modifications which 
involved a slight contribution of the workmen to the cost of insur- 
ance and in the beginning a limitation of the group of industries to 
be covered by the law. In this latter limitation the commission 
was quite persistent in including under the law only min<?s and 
quarries, the manufacture of explosives, and the construction of 
buildings. 

Upon these principles a government bill was introduced in the 
Chamber of Deputies February 8, 1890, applicable (1) to workmen 
of all establishments in dangerous industries, namely, mines, (juarries, 
construction, and the manufacture of explosives; (2) in establish- 
ments employing over ten workers and making use of mechanical 
power, shipyards, arsenals, mineral and metal working, mechanical 
construction, and textile industries. The same conditions were 
made applicable to government establishments as to private plants. 
Only those private establishments were excepted from the o])ligation 
of insurance which had special funds for giving the workmen com-, 
pensation in case of accidents and such state establishments as are 
provided for by special legislation. Of the insurance prc^.mium, 
nine-tenths were to be paid by the employer and one- tenth by the 

o Carlo Ferraris, L' assicurazione obligatoria e la responsabilit^ dei padroni ed 
imprenditori per gli infortuni sul lavoro. Rome, 1890. 



i 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1705 

employee. The employer must advance the employee's share, but 
may deduct it from his wages. The bill permitted insurance either 
with the national insurance institution, organized in 1883, or with 
any private authorized insurance company. Several provisions of 
the bill were intended to prevent industrial accidents. With the 
exception of cases of criminal responsibility of the employee the 
insurance system was intended to be a substitute for the old habihty 
under the civil code, and the employees were absolved from this 

liability. 

The parliamentary commission charged with the study of this 
bill presented a report on June 7, 1890, («) which, for the first time 
in the experience of parUamentary commissions of the I tahan Chamber, 
was favorable to the principle of compulsory accident insurance 
and the other essential features of the law, except that it suggested 
the exclusion of all cases leading to temporary disability of less than 
three weeks duration and the payment of indemnities beginning 
with the fourth week of disabihty. The minor accidents, in the opinion 
of the commission, were better taken care of by the voluntary asso- 
ciations of the workmen. 

This bill and the report of the commission did not come up for 
discussion on the floor. 

The next bill was introduced in the Senate by the minister of 
agriculture, April 13, 1891. C*) This was practically the same as the 
previous bill, as amended by the parliamentary commission. An 
important change was in the period during which no indemnities 
are to be paid, which was reduced from three weeks to two. This 
bill went to a senate commission, which brought in a substitute 
February 19, 1892, differing in many essential points from the min- 
isterial bill, e) 

The most important points of difference were as follows: First, 
the senate commission proposed to except the accidents due to 
gross neghgence of the victim from the action of the law, claiming 
that by compensating such accidents the law would stimulate care- 
lessness on the part of the employees. Second, it proposed to include 
persons in a supervisory capacity, provided they did not receive 
over 6 lire ($1.16) per day. Third, it embodied in the law a scale 
of compensation, which the preceding two bills left to the discretion 
of administrative authorities. Finally, greater attention was paid to 
the subject of prevention of accidents. 

a Bulletin du Comit6 Permanent du Congr^ International dee Accidents du Travail, 

tome 2, 1891, pp. 298-303. 

b Bulletin du Comit6 Permanent du Congr^ International des Accidents du Travail, 

tome 3, 1892, pp. 4-21. 



1706 



REPORT OF THE COMMISSIONER OF LABOR. 



The bill was the subject of prolonged discussions, but practically 
no voice was heard in opposition to the principle of compulsory in- 
surance, thus indicating a pronounced change in the pubHc attitude 
on this question- as a result of a decade of agitation. 

The bill as finally passed by the Senate March 3, 1892, differed 
from the text as proposed from the senate commission in form more 
than in substance, C^) for most of the views of the commission were 
accepted by the Senate unchanged. The bill as passed by the Sen- 
ate was introduced in the Chamber of Deputies March 26, 1892, 
but the dissolution of the Chamber of Deputies blocked further prog- 
ress of the bill. 

A new bill introduced in the Chamber of Deputies by the minister 
of agriculture, industry, and commerce December 1, 1892, approached 
closely the bill suggested by the senate commission in its report of 
February 19, 1892. In some respects it presented an advanc^e over 
all previous legislative proposals. Thus it proposed to include em- 
ployees in the manufacture of gas, electric power, and in telephone 
service, in addition to employees in mines, quarries, factories, arsenals, 
and shipyards and estabhshments for manufacture of explosives. 
It ordered the payment of indenmities for temporary disabihty, 
beginning with the sixth day instead of the eleventh. (*) 

On the other hand, the bill tried to limit the apphcation of the 
law as to the cause of the accidents. It gave the insurance institu- 
tions the right of action against the employers in case the accident 
was due to their criminal intent, gross neghgence, or noncompliance 
with the regulations concerning accident prevention and against 
the injured if the accident is due to his criminal intent or gross 
neghgence. This was evidently based upon the idea that the 
obhgatory insurance should cover only such accidents as are not 
due to anyone's fault or neghgence, i. e., are due to what has been 

called trade risk. 

Another new feature of the bill was the compulsion for all estab- 
Hslmients, whether of State, Province, or community, to be insured 
in the national insurance institution. The bill was referred to a 
parliamentary commission and reported back May 5, 1893, with a 
few amendments, but the proposal of this commission never came 
up for discussion. 

The bill introduced by the minister of agriculture, industry, and 
commerce June 13, 1895, did not differ materially from the pre- 
ceding bill. It discarded the quahfication of grave neghgence, but 

o Bulletin du Comit^ Permanent du Congr^s International dea Accidents du Travail, 
tome 3, 1892, pp. 222-232. 

6 Bulletin du Comit^ Permanent du Congr^s International des Accidents du Travail, 
tome 5, 1894, pp. 2-27; also T. Boediker, Die Arbeiterversicherung in den europae- 
ischen Staaten, 1895, pp. 295-308. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1707 

preserved that of accidents due to disobedience of laws or regula- 
tions, which is so close to the conception of grave neghgence that the 
change was more one of words than of conditions. Like its prede- 
cessors, it provided, fu^t, for accident prevention through safety 
devices and regulations, and, secondly, for a system of a,ccident 
insurance, with voluntary selection of the insurance institution, for 
all estabhshments employing not less than 5 persons. («) 

The report of the parhamentary commission, brought in December 
4, 1895, included several important amendments, namely, the per- 
mission' to employers to organize employers' mutual associations 
for insurance of their employees agamst accidents, the obhgation to 
convert the indemnities granted in case of permanent total disabihty 
into life annuities, and also a proposition to create a superior council 
of labor. When the report came up for discussion, (*) an amendment 
was adopted providing that in case of gross neghgence on the part of 
the employer, as estabhshed by judgment of court, the indemnity 
should be double, the responsible employer paymg the excess. With 
these amendments the bill was adopted in the Chamber of Deputies 
on May 27, 1896, and introduced in the Senate the following day, 

May 28, 1896. 

The Senate commission reported on this bill on July 10, 1896, and 
recommended striking out the compromise affected regarding gross 
neghgence of the employer. It reverted to the older formula of the 
bill of 1892 m making the employer civilly responsible in case of 
criminal intent or neglect to comply with the safety regulations. 
When the report came up for discussion a violent opposition de- 
veloped to the very basis of the compulsory insurance system. 
The bill was sent back to the central commission on December 4, 
1896, with instructions to reexamine the bill and bring m a new 
project more in harmony with the suggestions made. In less than 
two weeks the central commission brought in a substitute radically 
different from the bills discussed in both chambers for about seven 
or eight years, m that they proposed to substitute personal obhga- 
tion to pay compensation instead of obhgatory insurance. 

In view of the radical differences in the attitudes of the two cham- 
bers, the Government, on December 18, 1896, recahed the bill, prom- 
ismg at the same time to introduce a new bill in the near future, 
after a thorough reconsideration of the problem. 

The next step taken by the cabinet was to request the Consigho 
della Previdenza to prepare an exhaustive report on this question, 
which had already been studied by that institution in 1889. Prof. 

o Bulletin du Comit4 Permanent des Accidents du Travail et des Assurances 
Sociales, tome 6, 1895, pp. 433-444. 

& Bulletin du Comit^ Permanent du Congr^ International des Accidents du Travail, 

tome 7, 1896, pp. 505-508. 



1708 



REPORT OF THE COMMISSIONER OF LABOR. 



Carlo Ferraris was intrusted with the preparation of this report, 
as he had been seven years earUer. The principles proposed by 
Ferraris in his report C^) were on the whole in accordance with 
the bill which passed the Chamber of Deputies in May, 1896. The 
most important suggestion was for the purpose of settling the much- 
discussed question of personal responsibihty of either employer or 
employee. In the opinion of Professor Ferraris, all accidents caused 
by "civil fault'' (such fault as carried with it civil responsibihty 
only) of the employer or his agents should be classed together with 
other accidents in the class of trade risk and be subject to obhgatory 
insurance, while such accidents as are due to criminal negligence, 
according to the provisions (as estabUshed by a punitive sentence of 
a court), should carry civil habiUty. 

These suggestions were approved, and April 30, 1897, the Govern- 
ment introduced in the Senate a new bill based upon them.(^) In the 
mam the new bill was similar to that adopted by the Chamber of 
Deputies May 27, 1896. It included the same provisions for pre- 
vention of accidents, and endeavored to mtroduce a system of obh- 
gatory msurance with choice of insuring company; it covered, 
briefly, all minmg and manufacturing estabhshments employuig over 
5 persons, building, construction, transportation on land and inland 
waters, and orders compensation only for injuries causmg disabihty 
for over ten days. While the freedom of choice of the insurance 
institution was provided for, it was hmited either to the national 
institution or the employers' mutual insurance associations, thus 
demonstrating the influences of German example and experience. 
The question of the civil responsibihty of the employers hi case of 
crimmal neghgence was settled on the hues suggested by Professor 
Ferraris, i. e., the civil responsibihty remained in case of fraud, 
negligence, incapacity, or failure to comply with rules or orders, as 
provided for in certain articles of the penal code, if such fraud, etc., 
has been estabhshed by a punitive sentence of a court. 

This bill was sent to the central bureau of the Senate, which brought 
in its report June 22, 1897. The only important modification intro- 
duced by the commission was the establishment of greater liberty of 
choice of insurance institution, and the permission to establish inde- 
pendent funds under strict guarantees. The bill was adopted by the 
Senate with scarcely any changes July 5, 1897, and introduced in 
the Chamber of Deputies two days later. The report of th e parlia- 

oRelazione del Professore Carlo Francesco Ferraris sul Tema: "Gli infortuni del 
lavoro e la legge." Atti del Consiglio della Previdenza. Allegata B. pp. 205-322. 
(Ministero di Agricoltura, Industria e Commercio, Divinione Credit© e Previdenza 
Annali del Credito e della Previdenza, 1897.) 

b Bulletin du Comit^ Permanent du Congrfes International des Accidents du Travail 
et des Assurances Sociales, tome 8, 1897, pp. 215-228. 



i 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1709 

mentary commission on this bill, brought in February 10, 1898, 
showed that the principle of trade risk, which had caused so much 
opposition in the earlier days, had become generally accepted by that 
time. The idea of free choice of the insurer (with insurance compul- 
sion) had as many adherents as the method of compulsory insurance 
in a designated institution. At the same time the failure of voluntary 
insurance was freely admitted, as only one-tenth of the industrial 
workmen were insured in the national insurance institution. The 
commission recommended the adoption of the law, and after prolonged 
discussion it was adopted by 172 votes agamst 60 on March 13. It 
was approved and became a law March 17, 1898, promulgated March 
31, 1898, and went into effect six months later, Septeniber 30, 1898. 
The law of 1898 provided compensation for all injuries caused by 
industrial accidents and leading to death or disabihty lasting more 
than five days. It was applicable, first, to mines and quarries, build- 
ing, gas-producing, electric-power establishments, such establishments 
where explosives are produced or utilized; second, railroad transpor- 
tation, inland navigation, tramways, and construction works; and, 
finally, to industrial estabhshments utiUzmg mechanical or animal 
power and employing more than five persons. Within these branches 
of industry it appUed to workmen, apprentices, and overseers receiv- 
ing not more than 7 lire ($1.35) per day. No exception is made for 
accidents due to gross negligence of employees, but when the accident 
is due to willful misconduct, as established by a judicial conviction, 
the person or institution paying the compensation may be reimbursed 
through a criminal action. 

The scale of compensation established was briefly as follows: In 
case of death or total permanent disability an amount equal to 5 times 
the annual wages, with a minimum of 3,000 lire ($579) in the latter 
case; a proportionate amount in case of partial permanent disabihty; 
in case of total temporary disabihty— a daily compensation equal to 
one-half the average wages from the sixth day on, and a correspondhig 
portion in case of partial temporary disabihty. The compensation 
for death or permanent disability is paid in a lump sum, except in 
case of total permanent disability, when it must be converted into a 
life pension for the injured employee with a designated financial 

institution. 

For the payment of this scale of compensation, the employers were 
required to insure their specified employees either in the National 
Accident Insurance Institution or in authorized private insurance 
societies, while for public establishments, whether of the State or 
provincial or communal governments the national institution is pre- 
scribed; under certain conditions an employers' association for mutual 
insurance against accidents, or even a private employer's msurance 
fund could be substituted; government estabhshments for which pro- 



1710 



REPORT OF THE COMMISSIONER OF LABOR. 



vision has been made by special legislation are relieved from this 
obligatory insurance. Compliance with this law reheved the em- 
ployer from his responsibility under the civil law except in such cases 
when he or his agents are criminally responsible for the accidents as 
established by judgment of a court. 

Perhaps the most important advance of the law over precedmg 
bills was the establishment of a government fund for compensation of 
injured employees who have failed to receive the compensation due 
them on account of insolvency of the employer who has failed to insure 
his workers. Into that fund are paid the indenmities due in case of 
fatal accidents, when the persons killed leave no heirs. 

The law contained several provisions concerning accident prevention. 
It required the minister of agriculture, industry, and commerce to 
prepare regulations after consultation with the employers in the - 
industries specified and with government authorities on the subject, 
and the failure to comply with these regulations was made a criminal 
offense. No special factory inspection was organized to carry this 
law into effect, but the existing mine inspectors and the private 
agencies were to be utilized, such as the employers' mutual insurance 
associations and societies for j)reventioh of acci<lents. 

On June 1, 1901, less than three years after the law of 1898 went 
into effect, the movement for amendment of the law was started 
by the introduction of a bill by the minister of agriculture, industry, 
and commerce, in the Chamber of Deputies. («) The most important 
changes suggested in this bill were as follows: First, the extension 
of the law to the followmg industries— the installation and repair of 
electric conduit wires and lightning rods; deep-sea navigation and 
fishing; loading and unloading, leveUng, and grading; felling and 
pruning trees; all employees working near industrial or agricultural 
machines, moved by mechanical power, and those employed to handle 
cannons or other apparatus for counteracting hail. For the proper 
organization of the msurance of persons employed in maritime navi^ 
gation, special regulations were included in tlie law in view of the 
many pecuHar conditions governing this industrial field. 

Second, important modifications were made in the scale of com- 
pensation for disability. For total permanent disability the compen- 
sation was increased from five to six times the annual wages, though 
the minimum limit was left unchanged. A corresponding increase 
was proposed in the compensation for partial permanent disability 
from five to six times the loss of annual earning power. According 
to the law of 1898, only those injuries were compensated which 

a Le projet de loi portant modifications ^ loi du 17 mars 1898 relative aux acci- 
dents du travail. Bulletin du Comit^ Permanent du Oongr^ International dee 
Accidents du Travail, tome 12, 1901, pp. 365-407. 
N 



\ 



I 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1711 

caused disabihty for over five days, and the payment of compensa- 
tion began with the sixth day. While no change was suggested m 
the class of injuries compensated, the new bill proposed that in these 
cases the compensation be paid for the entire period of disability. 

Third, a most important change suggested was that referring to 
persons entitled to compensation in case of a fatal accident. The old 
law simply named the legal heirs according to the Civil Code. The 
bill of 1901 suggested a compHcated schedule showing the distribu- 
tion of the compensation between the widow and children and the 
other relatives in descending or ascending line. More exact methods 
of computing the annual earnings of the injured employees, for the 
purpose of determining the amount of compensation due, were also 

introduced. ^ 

Fourth, the original law exempted from the obligation of insurance 
at fixed premiums in the National Accident Insurance Institution or 
private insurance companies such establishments as formed employ- 
ers' mutual accident insurance associations, which distribute the cost 
by assessment of the membership. Notwithstanding this effort to 
stimulate employers' mutual associations, only four such associations 
had been formed. The new bill gave the Government the right to 
make the formation of such mutual associations compulsory if after 
consultation with local interests it found such a step necessary. As 
was explamed in the memorial accompanying the bill, the provision 
was aimed directly at the sulphur mines of Sicily, which caused great 
difficulties to insurance companies writing accident insurance for 
them, because of the frequency of accidents. 

Other changes suggested referred mainly to methods of procedure 
and were of minor importance. 

The government bill was referred to a parliamentary commission, 
• which handed in a favorable report December 30, 1901, indorsing most 
changes recommended by the Govermnent, but suggesting several 
minor changes, of which the most important were as follows: Instead 
of all deep-sea fishing, only that within 10 kilometers (6.2 miles) and 
the fishing for sponges and corals was included; to felling and pruning 
trees the work of transporting them to the rivers or the wagon roads 
were added ; the absence of indenmity during the first five days of 
temporary disability was reestablished in accordance with the law of 
1898. The right to establish obligatory employers' insurance associa- 
tions was limited to the Sicilian sulphur mines. 

The bill passed the Chamber April 22, 1902, with a great number of 
further mmor changes. The most important were as follows: The 
addition of transportation of merchandise by land and construction 
and repair of ships; a minimum annual wage of 500 lire ($96.50) was 
estabUshed as a basis for computing indemnity for partial permanent 



1712 



EEPORT OF THE COMMISSIONER OF LABOR. 



disability; the brothers and sisters of the deceased, under 18 years of 
age, were given a right to compensation in absence of nearer relatives; 
the provisions of the government bill concerning t he payment of (com- 
pensation during the first five days of disability were restored, though 
struck out by the commission; in cases of partial permanent dis- 
ability with loss of 50 per cent of earning capacity or more, the pay- 
ment of a life annuity instead of a lump sum tlirough the national 
invalidity insurance institution was made obligatory; the general 
right of the Government to establish compulsory employers' mutual 
insurance associations was reasserted ; and several other changes were 
introduced, mostly in favor of the interests of the insured employees. 
The bill was introduced in the Senate April 30, 1902. It waa 
referred to the central office of the senate and reported back Feb- 
ruary 7, 1903, again with numerous changes, in >\ hich were embraced 
the following points: The law was further extended to the tearing 
down of structures, and all land transportation. The form of 
annuities lasting until the age of 18, but twice a.s great before the age 
of 12 as from 12 to 18, was substituted for lump-sum payments in 
paying compensation to minor children or brothers and sisters; and 
for the relatives in an ascending line annuities were also made com- 
pulsory instead of lump-sum payments. In general the pension idea 
gained in popularity, and payment of lump sums was made conditional 
upon the demand of the victim. A special scale of compensation, 
lower than the general scale, was prepared for seamen. In addition, 
the central office of the Senate suggested the passage of a resolution 
inviting the Government to present by the end of 1904 a bill for the 
establishment of a simplified, more rapid, and less costly procedure for 
settlement of disagreements, and, secondly, to elaborate a bill for the 
obligatory insurance against trade diseases. 

A few minor changes were introduced on the floor of the Senate, 
some of these of material advantage or extenfling the application of 
the law; thus, while the text previously included employees in agri- 
culture handling machines moved by mechanical power, tliis was 
changed so as to include all machines moved by any power other than 
by the employees tending the machine. The right to establish 
obligatory employers' mutual insurance associations was further 
enlarged, so that no evidence of necessity was required; the evidence 
of feasibility was sufficient. 

The bill passed the Senate April 3, 1903, was reintroduced in the 
Chamber of Deputies May 12, 1903, referred to the commission which 
reported June 25, 1903, in favor of agreeing to the form of the bill as 
it passed the Senate, and without further changes the bill was so 
passed June 28, and was approved and became a law June 29, 1903. 
Thus two years were consumed in the process of amending the law of 



t 



4 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1713 

1898. But the resulting law was considerably broader than the 
original act and a great many crudities were eUminated. 

In accordance with a provision in the act of June 29, 1903, the text 
of the older law was codified with that of the act of June 29, 1903, and 
the new consolidated text of the law was promulgated by royal decree 
of January 31, 1904. 

LEGISLATION IN FORCE. 

The codified text of the law, as published by royal decree of Jan- 
uary 31, 1904, («) is the basis of the accident insurance system m 
force at present. This is supplemented by the regulations published 
by the royal decree of March 13, 1904;('') the royal decree of May 15, 
1904, C^) referring to slight details of the special guarantee fund as 
established by article 37 of the law of January 31, 1904; the law of 
July 11, 1904;C^) the royal decree of July 11, 1904; and the royal 
decree of September 29, 1904, («) concerning the special provisions 
for the Sicilian sulphur mines. The royal decree of August 27, 
1905,(/) refers to the insurance of seamen. The royal decree of 
December 24, 1903, (^) concerning the modification of existing acci- 
dent insurance contracts, in view of the changes in the law, had tem- 
porary importance only. A royal decree of December 13, 1903,^^) 
establishes a table of coefficients for computing the respective shares 
of claimants of indemnity for fatal accidents. By another royal 
decree of the same date(») the new regulations governing the National 
Accident Insurance Institution were approved and a new scale of 
insurance premiums established. 

INDUSTRIES INCLUDED. 

The law now covers the following branches of industry: 
First. The more hazardous employments, viz, work in mines, quar- 
ries, and peat bogs, also the working of the raw material and the 
loading and transportation to the shipping point and unloading of 
the product; the construction, repair, and tearing down of buildings, 

a Italian text: Annali del Credito e della Previdenza, 1904, No. 55, p. 1. German 
and Italian text: Zacher, Via, pp. 26, 27. French text: Annuaire de la Legislation 

du Travail, 1904, p. 375. „^ r, x, 

6 Italian text: Annali del Credito e della Previdenza, 1904, No. 55, p. 30; Zacher 
Via, p. 46. German text: Zacher, Via, p. 47. French text: Annuaire de la Legisla- 
tion du Travail, 1904, p. 400. 

c Annali del Credito e della Previdenza, 1904, p. 132. 

d Annali del Credito e della Previdenza, 1904, No. 55, p. 129. 

« Bolletino di Notizie sul Credito e sulla Previdenza, 1904, p. 1643. 

/ Annuaire de la Legislation du Travail, 1905, p. 463. 

g Annali del Credito e della Previdenza, 1904, No. 55, p. 125. Annuaire de la Leg- 
islation du Travail, 1904, p. 464. . J 1 T • 

h Annali del Credito e della Previdenza, 1904, No. 55, p. 89. Annuaire de la Legis- 
lation du Travail, 1903, p. 314. 

i Annuaire de la Legislation du Travail, 1903, p. 353. 



1714 



REPORT OF THE COMMISSIONER OF LAROR. 



whether in the city or in the country, also including the loading, 
transportation, and unloading of the construction materials; gas 
works, electric power houses, and the transmission of gas and elec- 
tricity; telephones; the placing, repairing, and taking down of elec- 
tric conductors and lightning rods; arsenals, shij) yards (except such 
as do not build any craft with a displacement of over 10 tons), and 
all industrial establishments in which explosives are manufactured or 
used. In this group all establishments are included without regard 
to the number of employees. 

Second. All establishments in the following industries which 
employ more than five workers: The construction and operation of 
steam railways, or other railways driven by mechanical power; trans- 
portation on land, rivers, canals, and inland lakes, or deep-sea navi- 
gation; deep-sea fishing within 10 kilometers (6.2 miles) from the 
shore, and all sponge and coral fishing; loading and unloading; 
irrigation works, drainage and reclamation, and leveling and grading 
works; felling and chopping trees in forests; transportation of logs 
and wood to the wagon road or to the river front and depositing the 
logs in the rivers; construction and repair of harbors, canals, dams, 
bridges, tunnels, and roads; and the construction, repair, and demo* 

lition of ships. 

Third. All other industries or establishments which utilize steam 
engines or machinery not driven by the person who tends it, and 
which employ more than five persons. All employees of these estab- 
lishments, even if not engaged in handling the machinery, are included. 

Findly, the work of tending machinery driven by meclianical 
power and utilized for industrial or agricultural purposes; service 
with cannon and other firearms, used to break up hailstorms; and 
the commissary department of the navy. Establishments utilizing 
machinery temporarily only, or connected with educational institu- 
tions and used for the purpose of instruction, or with hospitals, 
asylums, or other charitable institutions, are exempted, except that 
those persons who tend the machinery must be insured. 

This very detailed enumeration of industries included under the 
law may be thus briefly summarized: All mining work, all building, 
practically all construction work, transportation, and all manufac- 
turing industry with the exception of the hand trades. The large 
branches of economic activity which are not included are commerce, 
agriculture (except lumbering and tending agricultural machinery), 
and domestic service. 

Cooperative establishments are subject to the provisions of the 
law on equal terms with other establishments, and the members of 
the cooperative group, if working in the establishments, must be 
insured like other employees. 



t 



+ 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1715 

The law also extends over the establishments, undertakings, or 
construction work of the state, provincial, or communal governments, 
or operated by private persons or corporations under a franchise 
(concession) from the Government. 

PERSONS INSURED. 

The law applies to all workmen employed in the establishments 
and branches of industry enumerated above, and working outside of 
their own homes, whether at time or piece wages; also persons 
employed in a supervising capacity receiving not more than 7 lires 
($1.35) per day and who are paid at least once a month; to appren- 
tices employed in the work, whether with or without pay. Work- 
men who are hired and paid by other workmen in the establishment 
are considered for this purpose as direct employees of the establish- 
ment. The Italian law thus differs materially from the laws of some 
other European countries, in that it does not include the office 
employees of industrial establishments or enterprises. 

In deep-sea navigation all members of the crew who receive not 
more than 2,100 lire ($405.30) per annum are included. 

CHARACTER OF DISABILITY COMPENSATED. 

The law grants compensation to the workman for all the injuries 
sustained because of the employment, and causing disability lasting 
over five days. There is no reference to the specific cause of the 
accident, the whole question of negligence, even if gross, having been 
entirely eliminated from the Itahan law. However, if the accident 
is due to the willful misconduct of the injured, as established by 
means of a penal decision of the court, the beneficiary may be sued 
for the amount of compensation. 

BENEFITS. 

The compensation granted by the law consists of the following: 
First, medical aid; in case of temporary disability, one-half the daily 
wages; in case of total permanent disability, an amount equal to six 
times the annual earnings, and a proportionate sum in partial perma- 
nent disability; and in case of death, five times the annual earnings. 

For seamen in deep-sea navigation the scale is considerably lower, 
namely, four years' earnings for total disability and three years' 
earnings for fatal accidents. 

The essential feature of this scale of compensation is that it is 
based upon lump-sum payments, and though in some cases conver- 
sion into pensions or annuities is compulsory, as is explained pres- 
ently, yet these amounts of annuities depend upon the lump sum. 



1716 



REPORT OF THE COMMISSIONER OF LABOR. 



The Italian law does not attempt to cover the entire cost of 
medical and surgical treatment, as some other European compensa- 
tions do. 

Medical Attendance. — Medical help to the injured is limited to 
the cost of first aid to the injured and the cost of transportation to 
the home, or to any other place where the injured person must be 
taken, and that of the medical certificate. This expense must be 
met by the employer directly, no matter how the other compensation 

is paid. 

Employers who have organized a regular medical and pharma- 
ceutical service for first aid to the injured, or who have contracted 
for such help with the ItaUan Red Cross Society, may be freed by 
the order of the prefect from meeting the cost of medical help in any 
other way, provided the arrangements are satisfactory to the })refect. 

Only seamen receive full medical help. As they are granted free 
medical treatment during ilhiess or injury by an older provision of 
the Commercial Code, the law specifically states that these rights 
are not destroyed by the new act. 

Temporary Disability.— When the injury caused by the accident 
leads to total temporary disability, the injured person receives a 
daily allowance equal to one-half his wage at the time of the accident 
for all the time of the disability. Unhke most other accident insur- 
ance or compensation acts, the ItaUan law recognizes besides total 
temporary disabiUty also the case of partial temporary disabihty. 
The compensation for such disability (leading to a diminution but 
not entire loss of earning power for a limited time) is a daily allow- 
ance equal to one-half the loss in wages, paid for all the time of 
disability. All allowances for temporary disability are paid for all 
days including holidays, but the day of accident is not counted. 

Permanent Disability. — The compensation for total permanent 
disability is equal to six times the annual eamhigs, but not less than 
3,000 fire (S579). If the disability though permanent is only partial, 
leading to decrease but not total loss of earning capacity, the com- 
pensation is equal to six times the loss in annual earnings, but for 
the purposes of this computation the annual earnings must be taken 
at not less than 500 lire ($96.50). In either case, whether the per- 
manent disability be total or partial, the indemnity is exclusive of 
the allowances for temporary disabiUty for the first three months. If 
such allowances have been paid for a longer period, the excess of pay- 
ments over three months is deducted from the compensation finally 
computed. If the compensation due to partial permanent disabiUty 
is smaller than the allowances paid or due to be paid for temporary 
disability, then the injured employee has the right to this larger 
amount instead of the compensation for partial permanent disabiUty. 



chapter VII. workmen's insurance in ITALY. 1717 

To determine the degree of partial disabiUty from the injury sus- 
tained, the following scale is estabUshed by the regulations: 

Per cent. 

Lose of the entire right arm or up to upper third - - ^0 

Loss of the entire right forearm or of the left arm up to the upper thurd 75 

Loss of the entire left forearm or of all fingers of the right hand 70 

Loss of all fingers of the left hand ^ 

Loss of the right thumb ^ 

Loss of the left thumb 

Loss of the last joint of the right thumb |^ 

Loss of the last joint of the left thumb 

Loss of the middle or ring finger ^ 

Loss of a finger joint 

Loss of a thigh — 

Loss of leg up to upper third 

Loss of lower third of leg or foot 

Loss of big toe, and corresponding part of foot ^^ 

Loss of big toe alone 

Loss of any other toe does not give right to any compensation. 

Loss of more than one toe, per toe 

Complete deafness of one ear • 

Total loss of sight in one eye 

Total and incurable loss of function is rated as equivalent to loss 
of part or organ. In case of loss of several parts or organs or of any 
injury not mentioned, the degree of disability must be decided upon 

the merits of each case. 

When the permanent disabiUty is total or over 50 per cent, then 
the computed compensation must be converted into a life annuity, 
for which purpose the National Old -Age and InvaUdity Insurance 
Institution is utiUzed. Such conversion is not made immediately, 
however, because of the possibility that the origmal estmiate of the 
degree or duration of disability may not have been accurate. The 
compensation granted is, therefore, turned over m trust for two 
years to the old-age insurance institution, and monthly aUowances 
are paid to the injured person equal to the annuity which he could 
purchase with that amount of compensation. During these two 
years adjustments are made, as will be explained later in discussmg 
the subject of ''revision." After two years the remauxing sum (dis- 
countmg the payments and making the necessary adjustments as a 
result of the revision, if any) is converted into an annuity, though 
in exceptional cases the magistrate may, upon petition of the injured 
employee made within fourteen days after the expiration of the two 
years' limit, permit the payment of the residual amount in a lump 
sum instead of an annuity. 

If the injured person dies within the two years as a result of the 
accident, the remaining compensation (possibly adjusted as a result 
of a revision) is treated in the same way as compensation granted in 



ir 



1718 



BEPOET OF THE COMMISSIONER OF LABOR. 



|1; 



case of death; if the death is not due to the original accident, the 
remaining amount of the compensation is paid to the legal heirs 
according to the civil law. 

These complex provisions are evidently necessary because of the 
lump-sum basis for measuring compensation. The actual amoimt 
of the annuity is dependent upon the age, the value of the annuity 
purchasable with a definite amount increasing with age. Another 
peculiarity due to the system of lump-sum payments is that in the 
case of death of the beneficiary within two years from the day of the 
accident, if the death was m no way connected with the original acci- 
dent, the legal heirs inherit the bulk of the compensation, for the 
annuity is not purchasable until the end of the two years. 

Compensation for Death. — Compensation fur death is equal to 
five times the annual earnings of the victim, except that in deep-sea 
navigation the amount is smaller, equal to three times the annual 
earnings only. This definite sum must be distributed among the 
dependent members of the family as provided for in the following 

complicated rules: 

The dependent relatives are the consort, children or other descend- 
ants under 18 years or disabled; parents or other ascendants; and 
dependent brothers and sisters under 18 years or disabled. 

The surviving consort (of either sex) receives — 

Two-fifths of the compensation, if there are children or other 
dependent descendants under 18 years of age or disabled because of 
some physical or mental defect ; these descendants receiving the other 

three-fifths. 

One-half of the compensation, if there are no children or other 
descendants of the classes described but dependent relatives in an 
ascending line survive; these relatives receiving the other half. 

Three-fifths of the compensation, if there are no dependent rela- 
tives either in an ascending or descending line, but dependent 
brothers or sisters under 18 years of age or disabled because of some 
physical or mental defect; these brothers or sisters receiving the 
remaining two-fifths. 

The entire amount of compensation if no dependent relatives of 
the classes described survive. 

If the surviving consort had been divorced from the deceased 
through some fault of the consort, he or she is not entitled to any 
compensation at all. 

The surviving children (legal or natural) under 18 years of age and 
other dependent relatives in a descending fine leceive three-fifths of 
the compensation if the other parent survives and the entire amount 
if no parent survives. 



B 


) 










V 




m 





CHAPTER VII. workmen's INSURANCE IN ITALY. 1719 

The compensation due to aU the children together is to be distrib- 
uted among them in such a way that each child receives an amount 
sufficient to purchase a limited annuity of equal value for those under 
12 years of age; after reaching the age of 12 the annuity is reduced 
one-half until the age of 18 is reached, when the payments cease. 

If among the descendant heirs there are any who are incapacitated 
from earmng a fivehhood because of any physical or mental defect 
the share of the indemnity to be given to him Is determined by the 
pretor (justice of the peace) and against his decision there is no appeal 
The remainder is distributed among the other children accordincr to 
the rules explained above. '^ 

The relatives in an ascending fine are entitled to compensation only 
when no dependent children survive. They receive one-half of the 
compensation when tlie consort survives, or the entire amount of 
compensation when neither children nor consort survive The 
amount due to all relatives in an ascending line is distributed amon<r 
them m such a way as to provide them with equal fife annuities. "^ 

Dependent brothers or sisters under 18 years of age, or incapacitated 
from earmng a hving because of some physical or mental defect, are 
entitled to compensation only when no dependent children and no 
relatives m the ascending fine survive. Thev receive two-fifths of 
the compensation if the deceased is survived by the consort, and the 
entire amount of compensation if they are the only surviving rela- 
tives recogmzed under the law. The distribution of the total amount 
of compensation among these brothers and sisters is to be made 
accordmg to the same rules which govern the distribution of the com- 
pensation among the descendants. 

The distribution of the indemnities prescribed by these compficated 
rules must be efl"ected according to special computation tables pre- 
pared by the minister. («) 

These tables of coefficients were pubfished by the royal decree of 
Dec^eniber 13 1903, and are given below. They are based upon the 
probabdity of hfe, and in the case of the first table for minor depend- 
ents, also upon the length of time the annuity has to run. 

The method of using these tables of coefficients is simple. The 
coefhcients of individual dependents belonging to the same group 
(1. e. either descendants, or brothers and sisters, or ascendants) are 
added together and the total amount due to that group is divided by 
this sum of coefficients; the quotient is then multiphed by the coef- 
ncient of each dependent to ascertain his or her share. 

f^i^^re^'^Ju". ""^ '^V^""' ^^"^"^"^ '^^ minister is mentioned the minister of 
agriculture, industry, and commerce is meant unless otherwise sUted. 

67725°-voL 2-11 15 



I 



1720 



BEPOBT OF THE COMMISSIONER OF LABOR. 



TABLE OF COEFFICIENTS FOR USE IN COMPUTING THE SHARES OF THF QWItt^at 
DEPENDENT RELATIVES ENTITLED TO COMPENSATlSt UNDER THE L^^^^^^^ 
MINOR DEPENDENTS (DESCENDANTS AND BROTHERS AND SISTERS). 



Age. 



UndOT 1 month 

1 to 2 months.. 

2 to 3 months... 

3 to 4 months... 

4 to 5 months... 

5 to 6 months... 

6 to 7 months... 

7 to 8 months... 

8 to 9 months... 

9 to 10 months.. 

10 to 11 months. 

11 to 12 months. 



Coeffi- 
cient. 



79 
80 
81 
82 
83 
84 
85 
86 
87 
88 
89 
90 



Age. 



Coeffi- 
cient. 



1 to IJ years. 
1§ to 2 years. 

2 to2J years. 
2 J to 3 years. 

3 to3i years. 
^ to 4 years. 

4 to 4.J years. 
4 J to 5 years. 

5 to6i years. 
5| to 6 years. 

6 to 6 J years. 
6tto7 years., 



91 
92 
93 
92 
91 
89 
86 
84 
81 
78 
75 
71 



Age. 



7 to 7 J years. . 
7 J to 8 years . . 

8 to 8i years. 
8i to 9 years.. 

9 to 9J years.. 
9i to 10 years . . 

10 to lOi years. 
10 J to 11 years. 

11 to Hi years, 
llj to 12 years. 

12 to 12i years . 
12J to 13 years. 



Coeffi- 
cient. 



Age. 



68 

65 

61 

67 

53 

49 

45 

41 

36 

32 

27 

25 



13 to 13* 
13J to 14 

14 to 14i 
14§tol5 

15 to 15^ 

15 J to 16 

16 to 16i 
16J to 17 

17 to 17J 
17i to 18 



years, 
years, 
years, 
years, 
years, 
years, 
years, 
years, 
years, 
years. 



DEPENDENTS IN ASCENDING LINE. 



Age. 



22 to 22J years 
22J to 23 years, 

23 to 23i years. 
23J to 24 years. 

24 to 24 J years. 
24i to 25 years. 

25 to 25i years. 
25i to 26 years. 

26 to 26i years. 
26J to 27 years. 

27 to 27§ years. 
27i to 28 years. 

28 to 28 j years. 
28J to 29 years. 

29 to 29i years. 
29i to 30 years. 

30 to 30* years. 
30i to 31 years. 

31 to 31 J years. 
3U to 32 years. 
32"to 32* years. 
32.i to33years. 

33 to 33i years. 
33 J to 34 years. 

34 to 34 J years. 
34 J to 35 years. 

35 to 35* years. 
35^ to 36 years. 

36 to 3CJ years. 
36J to 37 years., 

37 to 37i years., 
37Ho 38 years.. 

38 to 38i years., 
38i to 39 years.. 

39 to 39 J years.. 
39i to 40 years.. 

40 to 40i years. . 
40* to 41 years.. 

41 to 41 J years. . 



Coeffi- 
cient. 



203 

202 

201 

200 

200 

199 

198 

197 

196 

195 

195 

194 

193 

192 

191 

190 

189 

188 

187 

186 

185 

184 

183 

182 

181 

179 

178 

177 

176 

175 

174 

173 

172 

170 

169 

168 

167 

165 

164 



Age. 



41J to 42 years.. 

42 to 42 J years.. 
42J to 43 years.. 

43 to 43* years.. 
43^ to 44 years, . 

44 to 44J years, . 
44J to 45 years.. 

45 to45i years.. 
45i to 46 years.. 

46 to 46J years. . 
46J to 47 years. . 

47 to 47* years. . 
47J to 48 years.. 

48 to 48^ years.. 
48J to 49 years.. 

49 to 49^ years., 
49* to 50 years.. 

50 to 50* years., 

50 J to 51 years.. 

51 to 51* years. . 
51 J to 52 years. . 

52 to 52 J years.. 
52J to 53 years, , 

53 to 53i years. . 
53i to 54 years. . 

54 to 54J years. . 
54J to 55 years. . 

55 to55J years. . 
55J to 56 years. . 

56 to 56J years. . 
56J to 57 years. . 

57 to 57 J years.. 
57J to 58 years, . 

58 to 58 J years. . 

58 J to 59 years.. 

59 to 59 J years.. 
59J to 60 years.. 

60 to 60i years.. 
60J to 61 years, , 



Coeffi- 
cient. 



162 
161 
159 
158 
156 
155 
154 
153 
151 
150 
148 
147 
145 
■ 144 
142 
140 
138 
137 
135 
134 
132 
130 
128 
126 
124 
123 
121 
120 
118 
116 
114 
112 
110 
109 
107 
105 
103 
102 
100 



Age. 



61 to 61^ years 
61J to 62 years 

62 to 62J years 
62i to 63 years 

63 to 63 J years . 
63J to 64 years. 

64 to 64i years. 
64J to 65 years . 

65 to 65J years . 
65J to 66 years . 

66 to 66 J years . 
66^ to 67 years. 

67 to 67i years. 
67* to 68 years. 

68 to 68J years. 
68i to 69 years. 

69 to 69J years. 
69i to 70 years . 

70 to 70J years . 
70J to 71 years . 

71 to 71* years. 
71J to 72 years. 

72 to 72 J years. 
72J to 73 years . 

73 to 73 J years. 
73 J to 74 years . 

74 to 74 J years - 
74 J to 75 years. 
75to75§ years. 
75 J to 76 years. 

76 to 76 J years. 
76J to 77 years.. 

77 to 77 J years. 
77J to 78 years.. 

78 to 78 J years. . 
78J to 79 years. . 

79 to 79* years. . 
79J to 80 years.. 

80 to 80J years. 



Coeffi- 
cient. 



98 

96 

94 

92 

90 

88 

87 

85 

84 

82 

80 

78 

77 

75 

74 

73 

72 

70 

69 

67 

66 

64 

63 

61 

60 

58 

67 

55 

54 

53 

52 

51 

50 

49 

49 

48 

47 

46 

45 



Age. 



80i to 81 years. 

81 to 81* years. 
81J to 82 years. 

82 to 82* years, 
82i to 83 years. 

83 to 83 J years. 
83i to 84 years. 

84 to 84* years. 
84J to 85 years. 

85 to85i years. 
85J to 86 years. 

86 to 86| years. 
86J to 87 years. 

87 to 87 J years. 
87 J to 88 years. 

88 to 88J years. 
88J to 89 years. 

89 to 89J years. 
89^ to 90 years. 

90 to 90J years. 
90§ to 91 years. 

91 to 91 J years. 
91 J to 92 years. 

92 to 92^ years. 
92J to 93 years. , 

93 to 93 J years., 
93§ to94ye^rs., 

94 to 94^ years., 
94 J to 95 years. . 

95 to 9oi years.. 
95J to 96 years.. 

96 to 96i years. , 
96* to 97 years.. 

97 to 97 J years.. 
97^ to 98 years.. 

98 to 98* years,, 
98 J to 99 years, , 

99 to 99i years,, 
99J to 100 years,. 



Coeffi- 
cient. 



23 

21 

19 

17 

14 

12 

10 

8 

5 

3 



Coeffi- 
cient. 



43 

42 

41 

40 

38 

37 

36 

35 

34 

33 

32 

31 

30 

30 

29 

28 

27 

27 

26 

26 

25 

25 

24 

24 

23 

23 

22 

22 

21 

21 

20 

19 

18 

18 

17 

16 

14 

12 

10 



In the absence of any relatives of the classes described, the com- 
pensation due IS paid into a special fund for payment of indemnities 
to employees of insolvent employers and for other purposes, which 
are described in detail in a subsequent section. 

The method of distribution of the compensation as outlined above 
presents many peculiarities which deserve to be emphasized The 
designation of the specific classes of relatives entitled to compensa- 






i 



i 



CHAPTEE VII.— WOEKMEN 'S INSUEANCE IN ITALY. 1721 

tion «nd the specific rules for distribution of compensation, when 
compared with the earUer drafts of the law designating only the legal 
heira shows progress and a transition from the legal point of view of 
labihty (so much for a death) to the point of view of need. But the 
transition has not been as complete as in some other laws. On one 
hand the compensation is not as great as the maximum allowed 
under the German, Austrian, or Eussian laws, under which the nen- 
sions amount to two-thirds of the annual wages. On the other hand 
the Italian law presents many cases of possibly excessive compensa- 
tion as, for instance, wh^ one minor child or one minor brother if 
left the only dependent relative, would receive an enormous annuity 
or Its equivalent up to 18 years, or when only very aged parents sur- 
vive the annuit,y that could be purchased for them in view of their 
high age might be higher than the wages of the deceased. A childless 
widow may receive the considerable sum of five times the deceased 
husband s wages, and remarry very soon after that, while ahnost aU 
simdar laws of other European countries provide for the discontinu- 
ance of the pension to the widow at her remarriage. A surviving 
widower may receive part or the whole of the compensation, even 
If not dependent upon the earnings of the deceased at aU. In other 
words, there js comparatively little correspondence between amount 
of compensation and need, instead of which there is a fixed relation- 
slup between accident and the amount of compensation. 

DETEBMINATION OP WAGES. 

Since aU forms of compensation are based upon the annual earnings 
or dady wages of the injured, the methods of determining thesT^S 
mgs become important. They are strictly defined in the law and 
regulations. If the annual salary is mentioned in the labor contr^t 
that sum IS taken; otherwise the actual annual earnings of the pr^ 
cedmg 12 months are taken. If the pei^on injurfd had been 

Zu^ifsoZ^VTr"^' '''' «^— 1 ---gB are taken to S 
equal to 300 times the daily wages. To determine these, the earnings 
of the employee durmg all the time of employment up to one yX k 
di^^ded by the number of fuU days of work rendered, aT^Tay" 
work being measured by the number of houi^ of work, usual for The 
estabhshment m question. The maximum Umit aUow;d in the com! 
putat^n IS 2,000 hre ($386) per amium; for cases of Irmanent 

IS established. If the mjured employee is an apprentice, then the 
owest wages of a regular workman in the same mdustiy a^d o^upt 
tion, or the one nearest to it, must be taken as a ba^is ^ 

taklT. ?K "*'°°''''' ^"^ '*''°'"'^' their actual daUy wages are 
taken, but they must not vary more than 10 per cent from thTc^ 
tomary wages for a day laborer hi the same locdity. 



1722 



KEPORT OF THE COMMISSIONER OF LABOR. 



I 



The computations are simpler in case of temporary disability If 
the injured person receives time wages, the wages of the day of 
accident are taken; if piece wages are pai.l, the daily wages are com- 
puted by dmdmg the earnings within the last 15 days by the number 
of full days of work, but the result must not be less than the cus- 
tomary mmimum wage. 

In aU computations of wages not only all money payments, but 
also the value of the payment in kind, according to the average 
local values must be included. 

BURDEN OP PATMENT. 

The cost of compensation falls entirely upon the employer the 
owner, or operator of the estabhshment or undertaking, though 'indi- 
rectly by means of payment of insurance premiums as explained 
presently The shiftmg of the cost upon the employees by d^ect or 

ST77^f wk"^ '""^ *^', ^'^^'^ ^ punishable by fines up to 4,000 
lire ($772) When any work is done by contract for the state gov- 
emment, Province, commune, or any public institution, the con- 
tractor must meet the cost of insurance. If any workers are employed 
in the establishment or undertaking who are hired and paid by other 
employees, the burden of insurance falls upon the proprietor of the 
enterprise. Whenever the requirements concernmg insurance have 
not been complied with, then in addition to various fines establLshed 
the habihty for the amount of compensation due reverts back to the 
individual employer. 

CIVIL EESPONSIBILITT. 

Compliance with the requirements of the law concerning insurance 

relieves the employers of all civil responsibility for accident, except 

when the cnmmal responsibihty for the accident has been placed by a 

penal sentence of a court upon the employer or manager, or any ot her 

person entrusted with supervisory work. In such cases not only the 

pereon crimmally responsible, but also the employer is civilly liable 

under the common law for the damages sustained by the iniured 
person. .; juicu 

When a judgment is obtained under this rule against the peraon 
civilly liable, only the excess of this judgment over the amount of the 
msurance is payable to the injured worker or to his heira. No such 
judgment must be granted, when in the opinion of the court it would 
not exceed the amount due under the insurance contract 

The establishment of the civil cases does not relieve the insurer of 
his obligation to pay the indemnity, but the insurer may sue the per- 
son liable for the amount of indemnity paid out . As explaine.l before 
the msurer may proceed in the same way against the injured employee' 
If he has been found criminally responsible for the accident causing 



I 



CHAPTER VII.— WORKMEN 'S INSXJKANCE IN ITALY. 1723 

his injury In all cases, if the criminal proceedings are dropped 
th^rb-e^clSeVo^ '°'^' ''' '''' ™- P— ^^ -- -i 

INSURANCE. 

Broadly speaking the Italian law is based upon a system of com- 
pulsion to insure though the method of insurance is not JresTrib d Td 
there are a great many exceptions to the compulsion. Establish- 
ments operated by the state, provincial, or communal governments 
or by pnvate peisons by franchise from the Government must iTure 
their employees in the National Accident Insurance Cit^"on 
unless they are provided with special compensation acts, «Sn they 
are exempt from all insurance. Other employe.^ may ii^ure thS 
employe^ with authorized private insurance compani^ 

The foUowmg substitutes for insurance in the national or private 

rZe'd b'vTr"'",''" r'^"^'^^ Private establishments funis 
organized by the employer (or by several employee in the same 

iftStrai 500 """' y tte Government, hUg a membeS; 
of more than 500 or employers' mutual accident insurance associa- 
tions organized by employers and authorized by the minister Td 
insurmg at least 4,000 employees. wnister, ana 

In addition to these employers' voluntary mutual associations 
compukory associations may be established by the Govemmen UHt 
finds after consultation with the chambei. of^ommerle p'o^cM 
councils, and the state council that such an association ik ni3y 
or advantageous to secure better compliance with the pr'Sons 
of the law. An employers' compulsory mutual accident immZl 
association must mclude at least 15,000 employees "^"'^nce 

J<mally, the railways to which the law appUes are exempt from the 

fund to the requirements of this law without interfering with the 
«=quired rights of the members of the funds. These^diiitments 
must be approved by the minister. aajustmenta 

The detailed provisions of the law concerning the regulatioM of 

ZZZ'^Tr '"'^r'' ^y'"^^"^"^^^ mimiecrn't h tht 
discussion ot the various classes of these institutions. 

SPECIAL GUARANTEE FUND. 

TJe special guarantee fund completes the complicated arrangementa 
made for securmg the payment of indemnity to the injurS^^^n 
It IS mamly mtended to provide a source for paying coXnaaUoTto 
mjured workmen of employers who have faUed to^omprwih the 
requirements for insurance and who have become insolvent so that 
civil procedure against them is useless. It also has othir subsMa^ 

SZureT:!^',^^^ *T^^'^- t--fit ^ds whii' :;rr':s 

assist mjured workmen durmg the first five days of disabihty, (2) 



1724 



REPORT OF THE COMMISSIONER OF LABOR. 



! 






to grant prizes to inventors of new safety devices, and (3) to subsidize 
associations or institutions granting medical help to the injured 
employees. The income of the fund is derived (1) from the compen- 
sation due for fatal accidents to employees having no dependent 
relatives entitled to compensation under the law and (2) from the 
fines and penalties imposed for noncompliance with the law or 
regulations. 

The bank of deposits and loans must notify the ministry at the end 
of each year as to the amount credited to this fund, and only when 
the hmd exceeds 20,000 lire ($3,860) may appropriations be made 
for subsidiary purposes. 

The subsidies to societies granting relief during the first ^\e days 
of disabihty may be made with intervals of at least five years' dura- 
tion. Such distribution is made among societies applying for it and 
presenting detailed evidence of their activities; the other fimctions 
depend upon the judgment of the minister. 

STATE SUPERVISION OF INSURANCE. 

Explicit regulations are provided for enforcing compliance with the 
insurance requirement in all its details. The owners or managers of 
new establishments must insure their employees before the beginning 
of operations or as soon as possible thereafter, and in no case later 
than five days after the beginning of operations. If any accidents 
happen before insurance had been eflFected the employer is personally 
responsible for the compensation according to the law. 

Within ten days after the beginning of operations the prefect of the 
Province must be notified as to the nature of the establishment and 
number of employees and apprentices employed. A similar report 
must be made of each insurance contract, giving the date, length of 
contract, and the number of workmen and apprentices insured. 
The discontinuance of work in the estabhshment must also be 
reported to the prefect. The prefect must compile the data in regard 
to all the insured establishments. 

In each establishment or undertaking an easily legible notice must 
be posted, stating the name of the insurance institution with which 
such insurance has been contracted for and the date of termination 
of the insurance. The original contract or a copy thereof must be in 
the possession of the employer at the establishment, and jnust be 
shown, with necessary explanations, to the injured workman or his 
legal representative, who shall be allowed to copy it. For non- 
comphance with this regulation the employer is subject to a ^ne of at 
least 50 lire ($9.65). 

For noncompUance with the insurance requirements, such as failure 
to insure or to renew insurance, or to increase it with the increase of 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1725 

the number of employees, the employer is subject to a fine of 5 lire 
(97 cents) per employee and per day, up to 2,000 Ike ($386). In 
addition, the employer is not only hable in case of an accident for the 
legal amount of compensation but he must pay an equal amount 
into the special guarantee fimd. The same penal provisions are 
made for those who cause the insurance to lapse through a culpable 
failure to pay the premiums due. 

A complete register of ajl employees must be kept m every estab- 
lishment subject to this law. This register must contain information 
as to the name, conjugal condition, date and place of birth, the date 
•f entermg service, and the usual occupation and the amount of daily 
wages. In addition a general wage book is required to be kept con- 
taining the accounts of each individual worker. It must be kept 
up to date, showing the earnings of each employee and payments 
made to him. These books must be bound, with pages consecutively 
numbered, and they must be examined by the insurance office before 
they may be used. The entries must be made in ink, and without 
erasures. Employees whose names are not entered in the wage 
book are not considered insured, and for their omission the employer 
is subject to the penalties provided. But until the fact of such non- 
compUance has been established by a court the insurance company 
is not reheved from the obligation of paymg compensation provi- 
sionally, with the right of sumg to recover these payments from the 
delinquent employer. 

The employee who receives piece wages, and who employs and pays 
his helpers, must also keep a register and a pay book. The register 
and wage books must always be open for mspection by government 
inspectors and agents of the insurance companies, who may copv 
extracts from them. 

Railroad companies and other public institutions, having regular 
pay rolls or temporary undertakings of very short duration, may be 
exempt from the obhgation of keeping registers and wage books. 

Individual wage books of uniform pattern for all branches of indus- 
try are made obligatory and must be supplied by the employer to aU 
the workmen. The same book may be used by the employee even in 
diflFerent estabhshments, and it must contam all information neces- 
sary for the administration of the accident insurance law. 

n the inspector finds that an establishment employs a greater 
number of workmen than is insured against accidents, he must 
prosecute the owner or manager of the establishment before the local 
judiciary authorities. The employer may be fined for giving wrong 
or misleadmg information, irrespective of the right of the ministiy 
to contract for the additional insurance at the expense of the delin- 
quent employer. 



1726 



REPORT OF THE COMMISSIONER OF LABOR. 



PROCEDURE. 



I 

1^ 



Report and Investigation of Accidents.— A satisfactory ad- 
ministration of an accident insurance or compensation act is 
impossible without a careful system of reporting accidents. The 
law requires that each accident resulting in disability lasting over 
five days or in death must be reported to the local pohce authori- 
ties by the manager of the establishment or undertaking, under 
penalty of a fine of from 50 to 100 hre ($9.65 to $19.30). The 
reports must be made to the prefect of the Province in which the 
estabhshment is located; they are required from all undertakings and 
establishments, whether or not covered by the accident insurance 
law, and they must be made within three days from the accident or 
the day on which information concerning the accident reached the 
manager of the establishment. To make such reports possible all 
accidents, no matter how [slight, must be reported by the injured 
employee to the person in charge of the establishment. In case of 
failure to do so, the injured person may lose the right to compensa- 
tion for the days elapsing between the date of the accident and the 
report to the manager. Only accidents causing disability of over 
^Ye days' duration must be reported by the manager, so that evi- 
dently an estimate must be made as to the probable length of disa- 
bility, which may not prove correct. If an accident had not been 
reported because the disabihty was not expected to last five days 
but subsequently did extend into the sixth day, it must be reported 
within three days thereafter. 

Similar reports of accidents must be made to the respective insur- 
ance institutions by managers of estabhshments subject to the law. 

Reports of accidents must include the name of employer, place and 
time of the accident, and its cause and descrii)tion; name, conjugal 
condition, age, address, and occupation of the injured employee; his 
condition, probable duration of the disability (to be certified by the 
physician), and names and addresses of witnesses. The pohce and 
other authorities must keep hsts of accidents reported. Failure to 
make reports of accidents must be brought to the attention of the 
court by the police. 

In all fatal cases, or such cases as are hkely to lead to disabihty for 
over thirty days, or to death, the pohce must forward a copy of tlie acci- 
dent report, together with the medical certificate to the local magis- 
trate (pretor), who is required to make an investigation within four 
days after the receipt of the report, ascertaining the followuig facts: 
The cause, the conditions of the accident, the nature and condition of 
the injury, the daily wages and the annual earnings of the injured ; the 
relatives of the killed employee and their place of residence, and the 
fact and method of insurance of the victim. 



T 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1727 

The time and place of such investigation must be communicated 
in advance by the magistrate (pretor) to the employer or his repre- 
sentative and to the particular insurance institution concerned. The 
investigation must be conducted in the presence of representatives of 
all parties concerned, and a physician and other experts invited by the 
magistrate. In the absence of the injured person or his representa- 
tives the magistrate may select two workmen of the same estabhsh- 
ment to represent his interest. The purpose of this investigation is to 
establish the actual facts as to the cause of the accident. Only in 
estabhshments where the work is done in secrecy for considerations 
of state may such investigation be substituted by a written report 
of the management. The investigation must be concluded within a 
few days and the facts stated in an official report signed by the magis- 
trate. In fatal cases copies of this report must be forwarded to the 
ministry. 

The report must remain for ^ve days in the office of the magistrate, 
after which it is transferred to the proper judicial authority, which 
may take any legal steps it finds necessary; the report is also trans- 
mitted to the civil tribunal of the district. 

The magistrates, witnesses, physician, and other experts called in 
to the investigation receive compensation for their work. 

Determination of Disability.— The insurance institution has the 
right to subject the injured person to a medical examination in the 
presence of the attending physician, and the injured employee has no 
right to dechne such examination whenever the insurance institution 
demands it, provided the insurer meets the cost; nor can the injured 
employee dechne to go to a hospital or a chnic for a determination of 
the consequences of the injury. When any dispute arises as to the 
nature of the results of the accident, the decision maybe intrusted 
to a medical arbitration board of three members, of whom two are 
nominated by the respective parties and the third by these parties 
together or by a president of a court. The president of the court 
determines the compensation of the physicians, at any figure from 5 
to 200 lire (97 cents to $38.60), and the distribution of this cost 
between the insurance institution and the injured employee. 

Sanitary officers and communal physicians may not decline their 
services necessary to determine the results of accidents. A scale of 
payment for their services is estabhshed in the regulations. Hos- 
pitals must permit medical representatives of the insurance companies 
to examine the patient. 

payment op compensation. 

Temporary Disability.— The insurance company must make the 
first compensation payment for temporary disabihty as soon as 
possible after receiving notice of an accident and the physician's 



1728 



REPORT OF THE COMMISSIONER OF lABOR. 



certificate, and in any case not later than twenty days after the acci- 
dent. In case of dispute as to the amount of compensation, the 
insurance company pays the amoimt which it thinks due and the 
disputed amount only is withheld. The subsequent payments must 
be made within intervals of seven days, and after the expiration of 
the first three months advance payments must be made until nine- 
tenths of the amount is paid out which the insurance institution 
thinks is due to the injured person. If the insurance company does 
not hold itself responsible it may decHne to pay, but must state the 
reasons in writing. 

The insurance company may delegate the employer to pay the 
compensation for temporary disabihty, reimbursing him subse- 
quently, but the employer must demand evidence of disabihty before 
making such payments. 

If the estabhshment possesses an infirmary, organized by the 
employer, in which the workmen are regularly treated, and tlie 
injured employee is being treated there with his consent, one- third 
of the daily compensation due is paid by the insurance company into 
the treasury of the infirmary. 

Permanent Disability. — ^Within eight days after the receipt of 
the final medical cetificate the insurance company (or association, 
etc.) must determine the amount of the compensation for permanent 
disability; the insurance company must inform the injured person of 
this amount and its estimate of the nature and degree of disabihty, 
the reasons for arriving at this conclusion, the wage used in the com- 
putation, the decrease in the wage which may have taken place as a 
result of the disabihty, and the amount of advance payments made. 
If the workman accepts the opinion of the insurance com])any the 
amount must be paid within eight days after notice of such accept- 
ance is given. In case of delay the usual interest must be added to 
the amount of compensation. 

If the workman disagrees with the insurance company, lie states 
the reasons in writing, and if his demands are not complied with 
within fifteen days he may carry the case to the courts, as provided 
for in the law. 

The regulations governing the conditions of payment of compensa- 
tion for total permanent disabihty, or for partial permanent disabihty 
which reduces the earning capacity by at least 50 per cent, are quite 
complicated, due to the intent of the law that such compensation be 
transformed into annuities. At the same time the conditions of pay- 
ment are further comphcated by the necessity of postponing such 
conversion for two years, lest some material change should take place 
in the condition of the injured employee which would necessitate a 
change in the amount of compensation. 

The insurance company pays the amount due, after deductions for 
advance payments made, to the National Old-Age and Invalidity 



\ 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1729 

Insurance Institution, and it is then free from any further liability, 
imless there ^should be a request for revision within two years. If 
the injured person should die before the indemnity was converted 
into an annuity, and if it should be established that the death was a 
consequence of the accident, then the legal dependents according to 
the law present to the old-age insurance institution evidence as to 
the death of the injured person, the opinion of the medical examiner 
as to the cause of death and other evidence of their right to receive 
the compensation. Then the amount due, after deductions for the 
payments made and with Aterest added, is distributed among the 
heirs according to the law. If the death is not due to the accident, 
the amount is paid to the legal heirs according to the Civil Code. 

If death does not occur the conversion is made after the expiration 
of the two years' period, but the monthly allowances are continued 
for two months more, and their value discounted from the amount 
used to purchase the annuity. 

To obtain the remaining amount of compensation as a lump sum 
the injured workman must petition the local magistrate (pretor) in 
writing, stating the reasons for his request. In the decision of the 
pretor the reasons for granting or declining the request must be stated 
in writing. 

Fatal Accidents.— In case of death the insurance company must 
take the necessary steps within twenty days to estabhsh the amount 
of compensation due. Those who claim compensation must hand 
in claims with the necessary evidence, and the insurer must within 
eight days inform them of the amount of computed compensation, 
stating the wage rate used for compensation and the advance pay- 
ments deducted. If a dispute arises the insurance company must 
pay temporary allowances up to nine-tenths of the amount which the 
insurance company admits as due, at semimonthly intervals, to all 
the legal claimants; the sum of this allowance per day must not 
exceed one-half the daily wage of the deceased. But if the dispute 
concerns merely the right of compensation no such preliminary pay- 
ments need be made. If the insurance company receives no infor- 
mation as to the existence of legal heirs it must so report to the 
ministry, stating also the amount of compensation granted, the wage 
rate used in computing it, and the total amount paid out and the 
amount to be deducted. The ministry may verify the accounts and 
order the insurance company to transfer the amount due to the 
guarantee fund as soon as the year has elapsed. 

REVISION OF BENEFITS. 

Both the victim of the accident and the insurance company may 
ask for a revision of the compensation durmg the two years following 
the accident, if the first decision was unfair or if changes had taken 
place m the physical condition of the injured workman. In case 



1730 



BEPORT OF THE COMMISSIONER OF LABOR. 



of a fatal accident, a request for revision must be made within two 
months from the day of death. As was explained aboye, it was for 
the purpose of leaving an opening for such revision that the com- 
pensation in cases of total permanent disability or partial permanent 
disability of 50 per cent or over was to be held in trust for two years 
by the old-age insurance institution. 

In making application for revision of compensation the insured 
person must present a medical certificate, stating either that the 
earlier judgment was incorrect or that the condition had sinc<» become 
aggravated. If the dependents under tJRe law make the recjuest for 
such revision the physician must certify that the death was due to the 
accident. Within one month from the date of the application the 
insurance company must either grant or decline to grant a new rate 
of compensation, stating the reasons for declination in writing. In 
case of declination the claimant may bring the claim into court. 
The insurance company must apply to the court for revision of the 
compensation granted. 

SETTLEMENT OF DISPUTES. 

Disputes arising out of the compensation for temporary disability 
are to be adjudicated by the local trade (arbitration) courts, whose 
decisions involving amounts up to 200 lire ($88.60) are final. In the 
absence of such arbitration courts the case is brought before tlie local 
magistrate (pretor). Cases involving amounts of more than 200 
lire ($38.60) must be carried to the ordinary courts, but in such cases 
counsel is not required and the cases are exempt from stamp dues. 
The court expenses are very low: For amounts up to 50 hre ($9.65), 
50 centesimi (9.7 ceuts); for 50 to 100 lire ($9.65 to $19.30), 1 lira 
(19.3 cents); and 2 lire (38.6 cents) for each additional 100 hre. 

SPECIAL PROVISIONS FOR SEAMEN. 

Numerous special provisions for seamen are contained in both the 
law and the regulations. Some of these are necessary because the 
pecuHar character of this occupation demands deviations from the 
general procedure. The necessity for other exceptions is not so 
obvious. Some exceptions have already been noted, llius no 
distinction is made between wage-workers and salaried employees, 
and all members of the crew receiving 2,100 hre ($405.30) pej* annum 
or less are insured. 

The scale of compensation is considerably lower in case of perma- 
nent disability (four times the annual wages instead of six) and death 
(three times the annual wages instead of five). As to temporary 
disability, previous legislation has granted seamen the right to their 
full wages, besides the cost of medical and surgical treatment, for four 



t# • 



^ 



CHAPTER VU. WOEKMEN's INSUBANCE IN ITALY. 1731 

months in case of illness or injury. This right is reaffirmed by the 
new law, and the right to the temporary disability compensation 
under the law begms only after the expiration of the four months 

boT the purposes of this law the person or corporation chartering 
the vessel is considered the responsible employer. When a vesselk 
lost or for lack of information is considered lost, and no certificate 
of death IS therefore possible, the legal claimants may enter their 
claims SDC months after the day of shipwreck or of the date of the 
information last received. The term of one year within which claims 
may be made begins after the -expiration of these six months 

In such cases the payments must be made under bonds, which are 
to hold good for three years from the expiration of the period of six 
months, and during these three years the compensation is subject 
to revision if any mformation is obtained from the pei^on supposedly 

Wages of seamen are computed by dividing the remuneration stipu- 

11 K .u "^^^ ^°y^^ P^"^ *^« ''"^^ «f subsistence, as per pay 
roll, by the number of days the voyage lasts. The annual earning 
are computed as 300 times the daily wage. The cost of subsist^ 
must be entered m the pay roll for each seaman, according to local 
custom at the port where he shipped. 

The report of the accident must be made by the captain and signed 
by two witnesses. It must be transmitted to the local port authorises, 

.tf nf .v." ^r\ T? ■ ' ^*PP«««d during the voyage, to the authori- 
ties of the first Itahan port reached. If there is a physician on the 

tS «LT'. r'f ^ *" '^^ 'T''' '''^''^ ^ physiciL's examina- 
tion and certificate must be obtamed at the first port of landing 

day of the arnval of a ship m an Italian port or in a foreign port 
havmg a^ Itahan consul. Investigations of fatal a.cidents^d o 
those leading to disability for over thirty days must be made W the 
port authonties or by the Itahan consul. ^ 

PREVENTION OF ACCIDENTS. 

Regulations for the prevention of accidents are included in the 
accident msurance law. The purpose of the combination of thes^ 
two fairly distmct measures in one act seems to have been to coZ 

thaf it tn'dT"" '>'2"'^°l-S-^^ obligatoiy accident insura^^^- 
that It tends to make both employers and employees less careful 
and accidents more frequent. ^e!* careiui 

The law authorizes the minister, after consultation with employers 

Se SdZh ^l^^f ""^^^ «"d for the protection of the workmen'! 
me and limb. Comphance with such regulations is demanded by the 



1732 



BEPOET OF THE COMMISSIONEE OF LABOB. 



law, and noncompliance is punishable by fmes. These rcgulationa 

W V "^Zi ' ''?^'"**' '''"^"'^^ "^ ^'^"«*'7, and also for certain 
locaht es. The minister must enforce such compliance with the 
regulations^ For the preparation of regulations one or more of the 
following bodies must be consulted: The (.ouncU of in.lustrv and 
commerce, the mining council, the superior councU for public works 
the superior committee for railroads, the council for forestrjr, the 

ofkbor "^ "*™'' ^** ^ ^" '^^^^ *^" ^"P^""'- ««"''"1 

In addition, the employers' compuISory mutual accident insurance 
associations are permitted to include in their constitutions provisions 
for prevention of accidents. 

INSPECTION.-For the purpose of enforcing compliance with the 
requirements concerning insurance and prevention of accidents the 
ministry may avail itself of the services of the factory inspec tore min- 
ing inspectors, and the inspectors and engineers of the minUtries of 
pubhc works and of the marine, as weU as of the technical employees 
of the societies for prevention of accidents and the employee' mutual 
accident msurance associations and the ins,)ectora of the National 
Accident Insurance Institution. Special officer may be detailed for 
inspection m connection with the work. 

Peraons intrusted with inspection of industrial establishments are 
prohibited from having any direct or indirect interest in any indus- 
trial undertakmg, or from being employed by such private establish- 
ments m the capacity of engineers, chemists, or physicians 

All establishments and undertakings must be regularly inspe<-.ted 
at least once m two years, and special inspections may be ordered 
by the mmister or by the prefect at any time. The inspectors must 
ascertam whether the preventive regulations and the insurance 
requirements have been comphed with. They have the right to 
Tisit the establishments, to question the employers, the supervising 
employees, and workmen, and to inspect the general and individual 
wage books, the insurance contract, and all necessary documents 
rhey must make reports to the ministry, making the necessary obser- 
vations and recommendations, and certifying to any infringement of 
the aw and regulations. A copy of the report must also be sent to the 
local judiciaiy authority and to the prefect. The report must be 
signed by the employer, or by his representative and the mspector 
ine employer may state his explanations. 

Compulsory mutual accident insurance associations must organize 
an independent inspection service over the establishments subject to 
Its juns^ction. Its inspectors may apply to the poUce for assistance 
m case they are hmdered in their work, and the employee must not 
place any obstacles m the way of their work, under penalty of a fine of 
from 20 to 300 Ure ($3.86 to $57.90). j- » » uae oi 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1733 

GENERAL PROVISIONS. 

Ail agreements waiving whoUy or partly the benefits conferred by 
this act are nuU and void. Indemnities or annuities paid under this 
act are not subject to cession or seizure. 

All claims under this act must be made within one year from the 
date of the accident. 

All contracts and legal documents executed in compliance with the 
requu-ements of this law are free from stamp dues, insurance taxes 
or similar taxation. 

APFLICATIOIT OP THE LAW. 

Voluntary insurance of workmen against accidents has been prac- 
,««f "WvuT^ *^! Nftional Accident Insurance Institution since 
1883 With the establishment of the compulsory system of insurance 
the functions of the national insurance institution were greatly 
enlarged. New tariffs were prepared, to provide for insurance in 
compliance with the requirements of tlie law, though the old tariffs 
remamed m force for voluntary accident insurance. But private 
msurance companies rapidly went into the field in competition. Four 
private accident msurance companies qualified toward the end of 
1898, and one m 1899. 

The other forms of insurance provided by the law did not grow in 
populanty under the old law of 1898. Only four employers' mutual 
accident insurance associations were organized under this law. One 
of these, the so-called "Subalpine Syndicate," was estabUshed in 
Tunn and approved November 30, 1898. By its constitution this 

™!r]r r", ^"*!»»T'1**' ^•'"^P* employers of aU industries 
covered by the law m the Provinces of Turin, Alessandria, Novara, 
and Com. It began its operations in December, 1898, with 333 
members and about 19,000 employees insured, and by 1899 the 
number of members increased to 600 and the number* of insured 
persons exceeded 30,000. 

« J^? ;^"*y»* \^°"ftion of mine operators, oi^anized in Sardinia 
"tlX The' ^^'f' ,1^' ^'^ - t«"i*<>rial limitations to its 
25 Tgoo S ''T'c*"''' "Legure," in Genoa, was formed January 

ments in fl,^ ^^^ I °'''?'^''^' ^""^ *" **^^^ ^«^« >«^g« ««tabUsh- 
T21T "" *°? "*""' industry. Its constitution admitted aU 

enterprises except the manufacture of explosives. The associa- 

:::aitSdiS:ut:^tr%r"r7f^^^^^^ 

members ^nA^t^TrZefe^Xyl^s ^'^ '^"''^ ''' 

one i^'^FWen;?^^^ ""T '''^T'"^ '"^ '^^^ *^^« cooperative funds- 

com;^wT:;xror«*'V*"'* ^^^ ^^p^^*^""'- '^^^ '- p^'--^- 

p ismg a number of Sicihan wme manufacturers; and one in 



1734 



REPORT OP THE COMMISSIONER OF LABOR. 



VercelH, with 88 smaU, misceUaneous manufacturing establisliments 
employing 552 workers. Finally, 10 independent cooperative funds 

^,000. The largest among these were the fund of a shipbuilding con- 

roS'/nf^'T''"' ^''^ ^'?^^ employees; the fund of subsidiary raU- 
roads, of Sardinia, msured 1,655; the fund of a large lin.-n-goods fac- 
tory, in V.cenza, with 1,681 employees; the fund of a machine shop 
m Milan, with 1,237 employees; and a pa,,er and printing estabS 
ment, in Florence, with 710 employees. Few of these private benefit 

unds were organized in 1899, but most of them liad exited for some 

time before the adoption of the law of Mar.], 17, 1898, and had sim^ 

appbed for recogmtion under the law. The am;ndm;nt of treTwin 

1903, by extending the scope of the application of the law and the 

raising of the prenuum rates of the National Accident Insurance In ^ 

tuhon, stimukted the formation of employers' mutual associations and 

private benefit funds. In 1904 three voluntary mutual association 

were organized in Genoa, of which one included the works tZ 

mantmie port and one the seamen of that port. An employed 

compulsory mutual association for the sulphur mines of Sicily wTs 

established in the same year. Three more voluntary associatiZ 

and the compulsory association for insurance of seamen were es X 

hshed m 1905, and two voluntary ones in 1906 

Three cooperative benefit funds were oiKanized in 1904, three more 

n 1906, and one early m 1907. Within the same period 12 private 

funds were formed, 3 in 1903, 3 in 1904, 5 in 1906, and 1 early iSm? 

The most important of these are the funds of street raUway employees 

in Florence and Naples, organized in 1903. Altogether, accordinrto 

qnytwr" i^^urance institutions brought up to February 28, 

Inst tution, 7 private insurance companies, 12 employers' voluntaiy 
mutual associations 2 employers' compulsory mutual association^ 
10 cooperative benefit funds, and 22 private benefit funds. 

GENERAL STATISTICS. 

Unfortunately, the statistics of the activity of these various insur- 
ance institutions in Italy are very meager and fragmentary, and any- 
thing hke a complete and up-to-date account of them is quite impos- 

A statistical report concernmg the appJcation of the law for the 

tZlZZT.Tl '■ '""^^ ^««^^b«^ -^1' 1899. was published 
early in 1 901 . (») Later reports concerning aU the accident insurance 
institutions were published in 1906.(') Keports for more recent 

" Bollettino di Notizie sul Credito e sulla Previden.a, February 1907 v 196 
* Bollettmo di Notizie buI Credito e sulla Previdenza, Vol. ^X iZ ' d 1^ 
c Bollettino di Notizie sul Credits e aulla Previdenza; Au^t'lm pp.'ls'f-HW. 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1735 

years were pubKshed in the official organ of the Office of Credit and 
Savings Institutions. («) Keports concerning the statistics of acci- 
dents alone are available for the second half of 1904, for 1905, and for 
1906, but these do not contain any information concemi^ other 
results of the insurance system. Very little is known concerning 
the effects of the amendments to the law. Besides, these reports are 
very fragmentary, so that even the total number of persons insured 
is not stated. (^) 

On December 31, 1899, 28,307 industrial estabhshments carried 
accident insurance, but for 20,459 establishments only was the num- 
ber of employees known, which aggregated 1,050,763 persons On 
December 31, 1900, the number of establishments carrying insurance 
was 36,020; the number of persons insured in 31,788 establishments 
was 1,272,592. (*=) 

In the report of the commission of the Chamber of Deputies con- 
cerning the ministerial proposal of Mareh 13, 1908, the number of 
persons msured is stated as follows: For the year 1903 869 874- 
1904 937,570; 1905, 1,089,086, and for 1906, 1,106,256 These' 
totals are so low m comparison with the reports of the earher years 
that some doubt as to their accuracy exists. As a matter of fact 
data from only one private insurance company out of seven are 
available for 1903 and 1906, and for two only for 1904 and 1905. 

^ a^BoUettino di Notizie sul Credito e sulla Previdenza, September-October, 1908, 

b Many fragmentary but valuable statement, may be found in the reports which 
Dr. Vmcenzo Magaldi, Chief of the Bureau of Credit and Social InsuTcT Tf tt 
fr/^P .^^--Iture, Industry, and Commerce (IMrezione Generate M ^e^Z 
e della Frev^enza, Min^tero di Agricoltura, Industrie e Commercio) periodiX 
furnishes to the international congresses of social insurance, and which C be con 
^dered sennofficial, as the supervision of these institutions is intrusted U>X^ h^Z 
Fmally, Doctor Magaldi's two studies of labor insui^ce in Italy, publish^Tn Ctor 
Zacher's well-known series in 1905 and 1908, contain some LLic^l Tn orma^iln 
which could not be found in the publications either of the Bureau of CreTand 
I^o^dence (Iv^pettorato Generate del Credito e delta Previderaa) or of the bL^u 
of Labor and these data have been made use of in the following brief review cT 
cerning «ie activity of the National Accident Insurance Instifution Z^ sI'tisH?.!i 
information available is much more complete institution, tiie statistical 

Accid7n"f Ti^vf-^ 'Tr^'r ''^"'' P^" ^- ^^^^^ (^-^-^ International dee 
Accidents du Travail et des Assurances Sociales, Dusseldorf, 1902, p 681) 

67725°— VOL 2—11 16 



1736 EEPOET OP THE COMMISSIONEE OF LABOR. 

No complete official record of the distribution of the total number 
of insured workmen among the various insurance institutions is 
available, the data for 1903 to 1906, published by the parliamentai? 
fXwr°''' °^ *'l'^"«d>y ^ery in,omplete. These data are L 

NUMBER AND PER CENT OP INSURED WORKMEN IN ITALY, CLASSIFIED BY KIND 

OF FUND OR ASSOCIATION, 1903 TO 1906. 





Workiueu insured in the year - 


Kind of fund or association. 


1903. 


1904. 


1905. 


1906. 




Number. 


Per 
cent. 


Number. 


Per 
c^nt. 


Number. 


Per 
cent. 


Number. 


Per 
c«nt. 


National institution. . 


421,363 

352,298 

62,793 

18,539 

14,881 


48.5 

40.5 

7.2 

2.1 

1.7 


370, 198 

443,990 

83,191 

24,734 

16,457 


39.5 

47.3 

8.9 

2.6 

1.7 


373,876 

514,464 

150,687 

28,346 

21,713 


34,3 

47 2 

13 9 

2 6 

2 


407,859 

447,654 

1H9,587 

35.662 

35,494 





Private companies . . 


36 9 


Mutual association. . 


40 5 


Cooperative funds 


17 1 


Private funds 


3 2 


Trt+ol 


2.3 


1 otai ^ 


869,874 


100.0 937,570 


100.0 


1,089,086 


100.0 


1,106,256 


100.0 





















The data indicate mainly a steady growth in the popularity of the 
mutual accident insurance principle. The figures for the cooperative 

IZtir Ki r**!,,^ "^T^^ growth, the number of insured having 
almost doubled within three years. 

The following table, constructed from the various reports of 
Doctor Magaldi, shows the number of accidents compensated by the 
various groups of insurance institutions, and therefore gives indi- 
rectly an idea of the comparative importance of these institutions: 

NUMBER AND PER CENT OF ACCIDENTS COMPENSATED BY EACH KIND OF 

INSURANCE INSTITUTION, 1899 TO 1905. ^ 

^'l^:''l^-&^^TSft^sir^t^^^^ Paris, ,900; Dui^,. 

del Lavoro, Vol. Ill and Vol. VII.] Previdenza, August, 1906; Bollettino dell' UfflSo 



Kind of fund or association. 



Nov. 1, 1898, 

to Dec. 31, 

1899. 




National institution 
Private companies 

Employers' associations 

Private and cooperative funds 
Railroad funds 

Total 






CHAPTEB VII.— workmen's INSURANCE IN ITALY. 173? 

The most important indication of this table is the gradual decUne 
m the relative importance of private insurance and the growing im- 
portance of the state insurance principle (in the National Accident 
Insurance Institution) on the one hand and of various mutual organi- 
zations on the other. Assuming that the number of accidents Com- 
pensated IS fairly representative of the number of persons insured 
neither mutual employers' association nor private funds showed a 
very extensive activity in the eariier years of the application of this 
law, as they did not claim more than 5 or 6 per cent. The employers' 
associations showed a tendency to grow. For the later years it is 

fr^m throttr^'^f ' *^^'«-«.'^*!-t« tte activity of private funds 
trom that of the employers' associations; but together these orivate 
and cooperative efforts show a considerable development, parfly due 
m 1:^1'"' of obligatory mutual employed assail " 
Ihe growth of thenational institution has been very rapid the slight 

decline in 1 905 being due to the formation of the SicUiL Sulphur m£ 
Mutual Accident Insurance Association, since the insurance ZtZ 
mines had been carried previously almost exclusively by the nit oS 
institution. In 1899 only one-fifth of aU accidents was comperlr^d 
by this institution, and in 1904 two-fifths compensated 

wS KTX^"^ '"' the expense of the private insurance companies 
which m the beginning claimed over 70 per cent of the insurance as 
the employers hurried to comply with the requirements of the kw 
bu gradually ost, the employers being attracted by the lower rat^ 
of the national institution. 

In the following table the accidents compensated by each woun of 
insurance institutions are classified accorLg to the t:rSSoT o 
the injuries sustamed, whether in death, permanent disability or 
temporary disability. Only for the years 1899 to 1901 are these daU 

S not Lt'h'T *'' r "■ '''' '""^ ^•^•'"'^-^^ ^^y •>« thus clSiied! 
but not for each class of insurance institutions separately. 



1738 



KEPORT OF THE COMMISSIONER OF LABOR. 



NUMBER AND PER CENT OF COMPENSATED A( CIDENTS RESULTING IN DEATH PER- 
MANENT DISABILITY, AND TEMPORARY DISABILITY, BY KIND OF INSURANCE 
INSTITUTION, 1899 TO 1902. liNauKAiNUJS 

^^S^i9S2•TonPt?hlT'H^"?JSi,1f ^'^.^^^°•^ ^^^ travail et des Assurances Sociales, Paris, 1900; Dussel- 
del La^or'of vir^^^^^ ^'^^'^ ® ^"^^ Previdenza, August, 1906; Bollettino deli' U^o 









Accidents 


. resulting lit— 






Year and kind of fund or associa- 


Death. 


Permanent disability. 


Temporary dis- 
ability. 




tiou. 


Com- 
plete. 


Partial. 


Total. 


Total. 




Num- 
ber. 


Per 

cent. 


Num- 
ber. 


Per 
cent. 


Number. 


Per 
cent. 




Nov., 1898, to Dec., 1899. 

National institution 


159 

361 

8 

5 

55 


1.3 
.9 
.8 
.8 

1.7 






345 

1,164 

51 

14 

74 


2.8 
2.8 
5.4 
2.3 
2.4 


11,663 

40,151 

885 


95.9 
96.3 
93.8 




Private companies 






12, 167 


Employer's associations 






41,676 


Private and cooperative funds. . . 






944 
603 


Railroad funds 














6,\jW 


vo.v 


3,129 


Total 


588 


1.1 




1,648 


2.8 


56,282 


96.1 


58,518 


1900. 

National institution. 


153 
324 

27 
5 

50 


1.0 
.9 

1.1 
.5 

1.6 


9 
8 
1 

1 
7 


529 

1,605 

86 

40 

72 


638 

1,613 

87 

41 

79 


3.4 
4.4 
3.7 
3.9 
2.4 


14,824 


94.3 




Priv ate companies ... 


« 15,726 


Employers' associations . . 


34,356 y4. 7 


36,293 


Private and cooperative funds 
Railroad funds 


2,238 
1,007 
3,180 


yij.z 
95.6 
96.1 


2,352 
1,053 




3,309 


Total 


559 


1.0 


26 


2,332 


2,358 


4.0 


55,605 ! 94.7 


"58,733 


1901. 

National institution 


279 

209 

31 

7 
46 


1.3 
.6 

1.2 
.6 

1.3 


10 
3 
....„ 

1 


895 

1,627 

106 

32 

101 


905 

1.630 

106 

35 

102 


4.1 
4.4 
4.3 
2.9 

2.8 


20,837 

35,178 

2,334 

1,148 


94.6 
95.0 
94.5 
96.5 




Private companies 


22,021 


Emplovers' associations. . 


37,017 


Private and cooperative funds. 
Railroad funds 


2,471 
1,190 




3,448 


95.9 


3,596 


Total 


672 


.9 


17 


2,761 


2,778 


4.2 


- . _ 1 






62,945 1 94.9 1 


66,295 


1902. 
Total (6) 


505 


.8 


39 


2,868 


2,907 


4.6 


59,957 


94.6 






63,369 



a Including 211 accidents the results of which were unknown 
Data by accident insurance institutions are not available. 

A comparison between the premiums paid to the insurance institu- 
tions, the compensation paid by them, and the wage expense of the 
employers throws some light upon the cost of the accident insurance 
system. The amount paid in wages was not stated prior to 1901, 
so that the comparison of premiums, compensation, and wages can 
be made only for 1901 and 1902. For 1903 to 1906 the data are so 
fragmentary that they are omitted from the table which follows. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1739 

AMOUNT OF COMPENSATION AND PREMIUMS, COMPENSATION AND PREMIUMS m 



Year and kind of fund or asso- 
ciation. 



Nov., 1898, to Dec., 1899. 



Wages of 
workers. 



Compensation. 



National institution 

Private companies 

Employers' associations. 



Total. 
Private funds. 

Grand total (a) 
1900. 



Paid be- 
fore Dec. 
31. 



$188,793 

327,076 

16,970 



Due but 

notpaid 

on Dec. 

31. 



National institution 

Private companies 

Employers' associations. 



Total. 



Private funds . . 
Railroad funds. 



Grand total. 
1901. 



National institution 

Private companies ] 

Employers' associations! 
Cooperative funds 



f 14, 703 
183,423 



Total. 



1203,496 
510,499 
16,97C 



Per 

cent 

of 

wages. 



Premiums paid, com- 

i pen- 

sation 

Per ,i?.P«»" 



Amount. 



$279,823 
713,915 
25,129 



cent 

of , 
wages. 



cent 

of pro- 

mi- 

uras. 



72.72 
71.51 
67.53 




147,488 

328,260 

37.029 



512,777 



Total. 



Private funds.. 
Railroad funds. 



Grand total. 
1902. 



National institution 

Private companies ...'... 
Employers' associations 
Cooperative funds 



Total. 



$2.5,495,077 

58,221,017 

6,037,116 

605,55? 



108.420 
235.365 



353,744 



255,908 

563. G25 

46,988 



866,521 




31,423,779 

65,484,573 

6,861,861 

583,329 



415,029 

309,834 

27,094 

2,899 



150,579 

16,219 

315 



415,029 

460,413 
43.313 
3,214 




Private funds.. 
Railroad funds. 



520, 137 

258,961 

33,425 

3,808 



218. 159 

11,127 

111 



520, 137 
477, 120 
44,552 
3,919 



1.62 
.79 
.72 
.53 



298,610 

662,617 

44,744 



1,005,971 



85.70 

85.06 

105.02 



86.14 



372,624 
567,826 
51,840 
6.071 



1.46 

.98 
.86 
1.00 



111.38 
81.08 
83.55 
52.94 



L66 
.73 

.65 
.67 



583,958 
646.715 
61,928 
17.965 



1.86 
.99 
.90 

3.06 



Grand total 121,847,J 




89.07 
73.78 
71.94 
21.81 



The 



915,108 232,135 1,147,243 j .94 j 1,310. 566 



1.06 



87.54 



a Exclusive of railroad funds. 



per cent TnlQm Vfnl ^'^'^'''^^ «« ^ages is shown to be 0.96 
Lcurate L! ^nd 1.08 per cent in 1902. Tliisis not altogether 
paid Th^ n ? ti»%Private and railroad funds no prenuums are 

Private^unds r'^ "^'f 'Z f' ''"''' *^°^ ^'^^ '^^'' ^-^^Pting the 

CpicentaL ,-T °^"^ ^"°'^'' "'■" '-^^ ^^'l l-26> respectively. 

ra es'^roptfo "t£f 'Z '^' J^'^'^'^-^ institution, which corrobl 

opmion that the industnes with the highest risks are insured 



1740 



EEPORT OF THE COMMrsSIONER OP LABOR. 



in this institution Altogether, however, the accident insurance sys- 
tem as estabhshed by tl»e law of 1898 did not cost ItaUan industries 
much over 1 per cent of the wage expense during 1898 to 1902 As 
the amendments of 1903, embodied in the codified text of 1904 made 
somewhat more liberal provisions, the .;ost is now considerably higher 
In fact the data for 1903 to 1906, though not very accurate, seem to 
indicate an increasing cost, which in 1904 amounted to 1.56 per cent 
in 1905 to 2.12 per cent, and in 1906 to 2.19 per cent. 

This comparatively low cost of the accident insurance system in 
the earber years is explained by the very low average amount of the 
compensation. From the two preceding tables and the estimates of 
Dr. Magaldi, quoted below, the foUowing statement has been com- 
piled : 

NUMBER OF ACCIDENTS COMPENSATED AND TOTAL AND AVERAGE AMOUNT OP 

INDEMNITY PAID, 1899 TO 1905. 



Year. 



1899 (o) 
1900.... 
1901 ... , 
1902.... 



Acci- 
dents 
compen- 
sated. 



55,389 
68.733 
66,295 
63,369 



Indemnity paid. 



Total. 



$738,621 

979, 543 

1,033,636 

1,147,243 



Aver- 
age. 



$13.34 
16.68 
15.59 
18.10 



Year. 



1903 
1904 
1905 



Ac« i- 
dents 
comi ken- 
sated . 



Indemnity paid. 



73.704 
121,654 
156,215 



Total. 



$1,286,948 
1.951,572 
2,558,732 



Aver- 
age. 



$17. 4ft 
16.04 
16.38 



a Not including the railroad funds. 

Thus the average amount of compensation per case, while increasing 
quite rapidly, amounted in 1902 to only $18.10, and in 1905 to $10.38! 
this including all cases. 

A general average like the above has a limited value. Of greater 
importance are the averages for tlie four main classes of accidents 
those resulting in death, complete permanent disability, partial per- 
manent disability and temporary disabUity. In such detail, <lata 
are available only for the year 1901, and they are shown in the 
table following. The average compensation for death is foun.l to 
have been only $633.42, for complete permanent disability $640 24 
for partial permanent disability $151.64, and for temporary dis^ 
ability which cases constitute the vast majority of aU accidents, $3.83 

Mo definite conclusions can be derivc^d from this table conceniing 
any differences between the various classes of insurance institutions 
except that the benefits paid by the railroad funds are considerably 
higher than those of other institutions. The number of cases of 
death and total permanent disability is too small for the averages to 
be trustworthy Both in case of partial permanent disabUity and 
temporary disability the compensation paid by private insurance 
compames seems to be decidedly smaller than that paid either by 
the National Accident Insurance Institution or by the mutud 
employers' associations. 



CHAPTER Vn.— workmen's INStlRANOE IK ITALY. 1741 

NUMBER OP ACCIDENTS AND AVERAGE INDEMNITV BY RESULT o,. m..r»^ 

BV GROUPS OP INSURANCE INSTITUWoSs IM ^"^ '^'^ 
tSouroe^Bollettino dl NotWe sul Credl.o e sulla Previden^, lugust, 1906.] 



Injuries resulting in- 



Kind of fund or association. 



Death. 



Cases 



Total perma- 
nent disa- 
bility. 



National institution 

Private companies .. . 
Employers' associations.'.'."" 
Cooperative funds.. 

Private funds 

Railroad funds. 



Total. 



279 

209 

31 

1 

6 

46 



Indem- 
nity 
per 
case. 



Cases. 



Indem- 
nity 
per 

case. 



Partial perma- 
nent disa- 
bility. 



Cases. 



572 



$613.82 
62&93 
544.13 
724.00 
713.50 
820.39 



633.42 



10 
3 



Indem- 
nity 
per 

case. 



Temporary 
disability. 



Total. 



17 



$693.70 
794 33 



338.33 
651.00 



895 

1,627 

106 

6 

26 

101 



$169. 93 
127. 01 
168.36 
274.67 
136.57 
371. 13 



Cases. 



646.24 



2,761 i 151.64 



20,837 

35,178 

2,334 

182 

966 

3,448 



In- 
dem- 
nity 

per 
case. 



$4.07 
3.41 
3.93 
4.63 
5.27 
6.34 



Cases. 



62,945 



ass 



22,021 

37,017 

2,471 

189 

1,001 

3,596 



In- 
dem- 
nity 

per 
case. 



$1&85 
12.44 
17.53 
17.01 
13.93 
27.18 



66,295 



15u50 



ii^u»5, iyu4, and 1905 are shown m the table followincr Ti.^ ^ 
T£Zt " f ^*^"«-- --piled by the auti^rrrorigl'leToS 

from offi^ai re,orC^r-J:::vtt:^ ::^^: ^ 

S Z it Th °* '^"^^ ^r "'^^ *^^ fi^-^ ^-oiel TewS 
co^Sle aSSnTSlt '= -rt?er- ^^ 

OENERA. RESULTS OP TUE -POCATIO.^^hE ACCIDENT INSURANCE .AW. .«„ 



^:::::^i3;^^^^;^«^^-^i^^ (^^-^e., nen v,b, ,«„,, 




Eight insurance institutions reporting. 



$1,495,371 

lone ■• 2,659,502 
1905... 3,153, 



Number 
of work- 
men in- 
svu^d. 



$1,286,948 
1,951,572 
2,558,732 



73,704 
121,654 
156,215 



16.04 
16.38 



$86.06 
73.38 
81.13 



Annual 
wages paid 
to insured. 



Num- 
ber of 
acci- 
dents 

per 
1,000 

in- 
sured. 



841,602 
926,631 
1,031,325 



$27,735,447 
36,348,208 
43,003,053 



72 

95 

105 



Aver- 
age 
premi- 
lunper 
$1,000 

of 
wages. 



$7.96 
13.75 
19.10 



Aver- 
age 
pre- 
mium 

Kf 

sured 



Approx- 
imate 

number 
of em- 

£loyees 
isured. 



$1.2911,163,563 
1.951,363,129 
2.021,563,659 



Ap- 
pro.x- 
imate 
num 
ber 
of 
acci- 
dents 
per 
1,000 
m- 
sured- 



63.34 
89.25 
99.90 



eight companies. ™^ """W" »» estimate oJ the ft^nZ^z^'^^^^^^^^^'^ 



1742 BEPOET OF THE COMMISSIONEB OP LABOE. 

The table indicates, fii^t, a rapid increase in the number of acci- 
dents compensated, proportionately as well as absolutely. In two 
years the absolute number has more than doubled (increased by 112 
per cent), partly through inclusion of new industries by the amend- 

from 72 to 105 per 1,000, or 45.8 per cent. The ayerage amount of 
compensation has not shown any tendency to increase, being in 1905 
less than m 1903 ($16.38 as against $17.4C), but the total amount of 
compensation has doubled and the amount of premiums has eye.i 
more than doubled. The ayerage premium per insured has increased 
from «1.29 to $2.02, and the cost of the insurance premium fi^m 8 
doubled* ^^^^^ *" ^'^^ P^'" *'^''*' '" <^°'^^iderably more than 

It is the general impression in Italy that this rapid increase of 
accidents repored is to a great extent due to fraudulent pnustices, 
and as vnll be shown m a later section, tlicse conditions haye create.! 
a strong demand for amendment in the procedure by which such 
frauds might be prevented. 

LITIGATION UNDER THE LAW. 

As one of the purposes of the law is to .lo away with unnecessary 
and costly htigation, and substitute for it a cheap, automatic, and 
orderly manner of settling disputes, the following statistics of the 
cases of litigation under this law are mteresting. It appears that 
durmg the year 1906, 1,987 cases were disposed of in some way and 
m 1907, 2,498, while 2,431 were pending on December 3^1 9^7 
making a total of 6,916 for these two years. In the table these cases 
are shown by the result, by the court, and also by the group of 
insurance institutions. . j s f "« 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1743 

LITIGATION UNDER THE ACCIDENT INSURANCE LAW DURING 1906 AND 1907. 
[Source: BoUetttao di NotWe sul Credlto e sulla Prevldenja, 1908, Vol. XXVI.] 





19C6. 


1907. 


1906 and 1907. 




Number of cases— 




Number of cases 


Total 
_ cases 

I 


Number of cases 




Kind of fund or asso- 
ciation and classi- 
fication of courts. 


Ad- 
judi- 
cated 


Com- . , 
pj.jj_ Aban 

. mised ^°°®<^ 


Tota 
_ cases 


1 

. Ad- 
judi- 
cated 


Com- AK„^ 

pro- ^^^ 

^j3g^ donee 


. Ad- 
judi- 
cated 


Com- 

pro- 

. misec 


1 

Pend 
i ing 
on 
Aban- De- 
[jdoned cem- 
ber 
31. 
1907. 


Total 
cases. 


National institution: 

Magistrates 

Lower courts 

Court of appeals . 
Court of cassation 


79 

187 

54 

9 


125 

341 

13 


54 

117 

6 


258 

645 

73 

9 


97 

181 

52 

9 


197 

364 

11 

1 


70 

123 

4 


364 

668 
67 
10 


176 
368 
106 

18 


322 

705 

24 

1 


124 

240 

10 

1 


211 

668 

85 

12 


833 

1.981 
225 








31 


Total 

Insurance companies: 

Magistrates 

Lower courts 

Court of appeals. . 
Court of cassation 


329 


479 


177 


985 


339 


573 


197 


1,109 


668 


1,052 


374 


976 


3,070 


43 

109 
27 
11 


103 

244 

4 

1 


14 

26 

1 


160 

379 

32 

12 


51 

190 

43 

3 


117 

322 

5 


36 
54 


204 

566 

48 

3 


94 

299 

70 

14 


220 

566 

9 

1 


50 

80 

1 


243 

614 

79 

14 


607 

1,559 

159 

29 


TotAl 

Mutual associations: 

Magistrates 

Lower courts . . 
Court of appeals. 
Court of cassation 


190 


352 


41 


583 


287 


444 


90 


821 


477 


7% 


131 


950 


2,354 


94 

134 

22 

1 


35 
61 

1 


12 
9 


141 

204 

23 

1 


104 

160 

81 

2 


40 

78 

7 


15 
9 
3 


159 

247 

91 

2 


198 

294 

103 

3 


75 
139 

8 


27 

18 

3 


157 

255 

53 

5 


457 

706 

167 

8 


Total 


251 


97 


21 


369 


347 


125 

1 

9 


27 

" i' 


499 

2 

15 

1 


598 


222 


48 


470 


1,338 


Cooperative funds: 
Magistrates 


1 
5 
3 






1 

12 

3 


1 
5 
1 


2 

10 

4 


1 
16 






Lower courts. . 


7 




3 

37 


Court of appeals. 
Court of cassation 


1 


10 










4 


1 otai 


9 


7 




16 


7 


10 


1 


18 


16 


17 


1 


10 1 


44 


xTivate funds: 

Magistrates 

Lower courts 

Court of appeals. 
Courtofcassation 


2 
11 

6 
2 


2 

8 


2 
1 


6 

20 

6 

2 


11 
13 

6 . 

1 . 


2 
14 


4 


17 

27 

6 

1 


13 

24 

12 

3 


4 
22 


6 
1 


5 

18 
1 
1 


28 
05 
13 

A 


Total 


21 


10 


3 


34 


31 


16 


4 


51 


52 


26 


7 


25 


110 


All insurance insti- 
tutions: 

Magistrates 

Lower courts. . 
Court of appeals. 
Courtofcassation 


219 

446 

112 

23 


265 
661 
18 
1 . 


82 566 

153 1,260 

7 137 

24 


264 

549 

183 

15 


357 

787 
23 
1 . 

- 


125 
187 1 

7 


746 

,523 

213 

16 


483 
995 1 
295 
38 


622 

,448 

41 

2 - 


207 
340 1 
14 


016 

,565 

218 

32 


1.928 
4,348 

72 


-lotai 

— ___J1 


800 


945 


242 1 


,987 1,011 1,168 


319 2,498 1,811 2,113 


561 j2,431 


6,916 



setUed fn Tf' ^'^^^ ^"'^ ^^""^^S, so that only 4,485 were 

abandoned 2 m T,"^- ""' *'^"^' '^'' "^ ^^-S per cLnt, were 
!nd only 1 si n """Jl P'"" '"'''' ^'"^ «o'"Pr"'"i«e«i out of court, 
number of '1' ^- "'^ ?"'' '^''^' ^^'^ adjudicated in court. Th^ 

rea"he:nearf;T50 ^Fo^'t^ ^Tr T^''^''^^ '''^*'*"""- 

tution and tKl I ' . • ^^"^ National Accident Insurance Insti- 

luiion and the pnvate msurance companies, the report dves the fol 

atTf tim?'""'^ '°'- ''''' ^^^ fi^-- ^- 1907 -t beS; "vaUabt 



1744 



EEPOET OF THE COMMIS8I0NEE OF LABOR. 






(Source: BoUettino d. No.ule sul Credlto e sulla Prevldema, IMS, Vol. XXVI.] 



Kind of Insurance In- 
stitution. 



Num- 
ber of 
acci- 
dents. 



National Accident In- 
surance Institution. 

Private insurance 
companies 



Amount 

of 
premiums 
received. 



Amount 
of com- 
pensation 
paid for 
accidents. 



Cases of litigation on account of accident. 



Adjudi- 
cated. 



66,077 
86,416 



$1,244,289 
1,637,595 



Num 
ber. 



11,119,064 
1,407,155 



329 
190 



Per 
1,000 
acci- 
dents 



Compro- 
mised. 



4.98 
2.20 



Num- 
ber 



479 
352 



Per 
1,000 
acci- 
dents 



Abandoned. 



7.25 
4.07 



Num- 
ber. 



177 
41 



Per 
l.OUO 
acci- 
dents 



Total. 



2.68 
.47 



Num- 
ber. 



985 
583 



Per 

1,000 
acci- 
dents 



14.91 
6.75 



It appears from this comparison that of the ca^es insured in the 
Nat onal Accident Insurance Institution, nearly 15 cases per thousand 
led to btigation while for the private insurance compaJfes the pr^ 
portion IS less than 7 per thousand. It is exolained in fl.o .flf ^ 
report however, that this difference agairit thfn'ttnal stitSbn 
IS not due to any tendency of this institution to put difficu lies n Z 
way of paying compensation and to call forth htigatbn bltto he 

!!* *; T'*' ~'""=^ ''"'^P^'^^^ "^^y scnitLze thetjui 
for accident msurance and decline the risks, while the natZal 

msurance institution is prohibited from declining any apSt.on 

for msurance, and therefore gets the worst insurance conScts 

THE NATIONAl ACCIDENT mSTTKANCE mSTITUTIOlT. 

Among the institutions provided for accident insurance the mo.,f 
important is the National Institution for Insuranro Workmen 
agamst Industriah Accidents (Cassa Na^u.ru.U d' AssuuraJZ^ 
gllnfoHumdegh OTpera^ sul Lavoro), not only because of its closl 
official relations with the Government, making it practicaUv a state 
institution and because of the large amount'of a^ccTdent i Urlt 
It carnes, but also because of its history and the r61e it played in Z 
development of the idea of accident insurance. Italy jiined the £ 
of countries with compulsory accident insurance in 1^98, after a lot 
and obstmate opposition, which laste.l nearly 20 years Duri .1 

tt Jettd oit n "'^'"^ ^'^ '^'''' '" ^'^'^^^ '- p-''»- ^^o3 

the method of voluntary insurance, and because the establishment 
of this system did not change the legal status of employer^' iaSv 
no objections were raised to the biU to establish « SiA^^ai- "*''"'*^' 
institution for the voluntary insurance^Tltwn a^Z ™ 

lylin^Tsst^tt'th^^rrnr * '" '""^ ^^'''— - ^- -- 

Soduced ^''' * '^''"^"^ "* compensation was 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1745 

For 15 years (1883 to 1898) this system of voluntary insurance 
operated before the law for compulsory insurance was finally passed 
and while the voluntary system was admitted to be insufficient the 
volume of the operations under this system was constantly grovring 
In the system of compulsory insurance, as introduced by the law of 
1898, this national insurance institution was given a prominent 
function, but its operation under the new law has radically changed 
in so many important respects that the history of this institution 
is divided by the law of 1898 into two weU-defined periods. 

HISTORY. 

The National Accident Insurance Institution is a private institu- 
tion, organized by ten private savings and banking institutions («) 
which on February 8, 1883, concluded an agreement with the minister 
of agriculture, industry, and commerce. This agreement was approved 
by the law of July 8, 1883. The law granted to this private insti- 
tution certam privileges, such as the free cooperation of the postal 
savings banks m all its financial transactions, the exemption of aU 
Its transactions from stamp duties and other taxes, and the exemption 
of the institution from the provisions of the Commercial Code con- 
cerning commercial corporations. The system of voluntary insur- 
ance against accidents as it existed until the law of March 17 1898 
went into effect, was established by this agreement and the foliowin^ 
acts: The law of December 3, 1886, and royal decrees of March 3 
1884 (approving the rates), July 3, 1884 (approving the constitution 
and by-laws), July 24, 1887, November 22, 1888, and December 2^^ 
1888 (approving the revised by-laws). (») 

The institution was left its autonomous administration, though put 
under government control. It was self-supporting, that is no 

ma'nl/flr tf .«°^™-* -- g-^^ed. Its income was derived 
mainly from the msurance premiums, and in addition from interest 

ZTi^tirt "' '"™ othermisceUaneous sources. The TnS 
InLl /'. T""^"' 7"'^ ^*'«"' ^"'l t^eretore presented a sub- 
plots "t r^ "'^^ ""•^^'^ *" "'^'^^'-^^'^^ the insurance of em- 

tt stabU^l fT'°'' •''"' '°*'''"^^ ^°'"'^**'7' it f°"°«'« that 
tne estabhshment of this institution did not introduc e any change in 

Roml'VtlJr crurth^J''"rn ^^'*"''^ ''^■"^ "' **"-■ -runn. Bologna, 
Genoa and t^'ellnTo'mtnt". . """"t '""' "' ^'"'y^ *« '-" ^^'"^^ ^-^^t 
lire mi5,m)(M~Z .r- ^^^ **'■''" institution contributed 600,000 
bank 200 000 l^ejsl^f ^T ^ '"'T"^ *" ^^''^ ^"^ (1120,625)), the Naples 
100,000 li^e ($I9 3(L)t^\L.V*'°'^f l"^"' ^°''«°*' ^'«"''' ^o"*' ^"d Sicily 
Venice and cU'^S'li^e (^ eal ''''^ '''' '''''''''' ""^ *^ ''-'^ »' 

w srur^'^riri" ¥r:/'^ntT ''''■ ^^^ *^-^- ««»-• 

Troisifeme partie, pages 1^3-i700 ^ Assurance Contre les Accidento. 



1746 



REPORT OF THE COMMISSIONER OF LABOR. 



the legal relations of the employers and employees, and put no financial 
obligations upon the industries except as the employer was willing 
to insure his employees at his own expense. 

The insurance institution was organize*] in recognition of the 
necessity of some provision for the victims of industrial accidents, as 
well as of the advantages of an orderly adjustment of claims oVer 
protracted judicial procedures. Notwithstanding the recognition of 
the advantages of insurance, the obUgatory system was claimed to be 
ill adapted to Itahan conditions, because tlie burden of such insur- 
ance was excessive in view of the weak position of ItaUan industry, 
and because the compulsion was out of harmony with Italian condi- 
tions. Therefore it was reasoned that the development of voluntary 
insurance was more desirable, and for this development the national 
institution was to be a most efficient stimulus. There had existed 
some private accident insurance even before the institution was 
organized; but it was costly and therefore not popular. The national 
institution was able to quote very low premium rates for thrt^e reasons: 
The absence of a profit motive in its organization by the ten savings 
banks, which are institutions for social welfare; the low cost of 
administration, and the material advantages arising from the guar- 
antee fund and the privileges offered by the Government. The 
premium rates of the National Accident Insurance Institution were 
very much lower than those quoted by private insurance companies, 
the latter in some cases being 300 or 400 per cent higher. («) It thus 
not only offered a very cheap form of insurance but was to act as a 
factor in forcing the private companies to reduce their rates. 

The National Accident Insurance Institution began its operations 
on a very small scale, but grew rapidly during the earli(;r years. 
In 1884 the number of insured was less than 500; in 1886, over 30,000* 
and in 1890 over 100,000. In 1897, on the eve of the adoption of 
the compulsory accident insurance law, the total number of insured 
was 172,869. 

PRESENT PURPOSE AND SCOPE. 

The original legislation concerning the national institution still 
remains in force, and only new regulations concerning premiums and 
indemnity were issued in 1898 and 1903 to conform with the require- 
ments of the new law. The institution provides accident insurance 
to all wlio apply for it. According to the law of 1904, it must accept 
all insurance— and even all reinsurance— oftered, though it may in- 
crease the premiums when the insurance asked presents a special risk. 
The law further provides that estabhshments operated by the state, 

«Avantage du libre choix de Tassureur-Coagr^s International des AccldentH du 
Travail et des Assurances Sociales. Troisi^me Session, Milan, 1894 Tora«> 1 na^ea 
865 to 881. ' ^^ 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1747 

provincial and communal governments, or by private persons by 
franchise from the Government, must insure their employees in the 
national mstitution. 

As far as obhgatory insurance is concerned, the general provisions 
of the accident insurance law apply. Voluntary insurance against 
accidents may be contracted for by any industrial or agricultural 
estabhshment in the country. 

According to the decree of November 22, 1888, all workmen 
who reside within the Kingdom and who have reached the age of 9 
years may be insured. According to the agreement of 1883 the 
minunum age was 10 years. The blind, deaf, mute, epileptic, and 
msane are excluded, as a rule, though the executive committee may 
permit the msurance of deaf, mute, or blmd. Epileptics may be 
insured only m the collective form and persons over 70 years of age 
only m the individual form. ^ 

. ^.^^f. ^^^ beginnmg of the operations of the national insurance 
institution It has insured against the results of industrial accidents 
namely, death, total or partial permanent disabihty, and temporary 
disabihty. Each insurance poHcy may or may not include the 
latter separate schedules of rates being provided for insurance which 
mcludes temporary disabihty benefits. 

BENEFITS. 

f„,^/^fi T^.^^ organization of the national insurance institution 
for the first 15 years of its existence was based upon the principle of 
voluntary msurance, no fixed amounts of compensation couJd be 
estabhshed, the determmation of the amounts being left to individual 
contracts and depending upon the insurance premimn paid, as 
explamed m a later section. f u, as 

The foUowing stipulations were made in regard to the payment of 
compensation. In case of death, the whole amomxt of insurance was 
paid to the legal heu^. Of permanent disabUity, three degrees were 
recognized First degree: Total permanent disability, incFuding the 
OSS of both eyes, both arms, both hands, both feet, one arm and one 
hand, one hand and one foot, or incurable mental disease. For such 
disability the payment of the full amount of insurance wa^ granted 
Second degree: Permanent disability, reducing the earning capacity 
one-half or more, mcludmg such injuries as the loss of one arm or 
hand or one leg or foot, or such mental disease as does not altogether 
disqualify the person from employment. Tliird degree: WTien the 
uijuiy IS not as serious as in the preceding degrees, but yet lea<ls 
to permanent dimmution of earning power, such as loss of one eve 
or one or several fingers. For injuries leading to disability of Ihe 
second or third degree from 10 to 80 per cent of the total amount 
of insurance was paid. Indemnities for permanent disabihty or 



1748 



REPORT OF THE COMMISSIONER OF LABOR. 



death were paid if these consequences developed within one year 
from the day of the accident. 

In case of temporary disability the full amount of the daily benefit 
stipulated in the insurance pohcy is paid from the sixth day through- 
out the continuance of the disability, but not over 360 days. The 
original agreement provided for compensation for temporary disability 
to begin one month after the injury; but by the law of December 23, 
1886, the superior council was permitted to reduce this period, with 
the approval of the Government, and by the decree of July 24, 1887, 
the payment of compensation beginning with the sixth day was 
permitted. 

The amount of daUy benefits could be reduced by 20 per cent to 
40 per cent after the first 24 days. If the duration of disability 
could not be estimated, or was likely to last over three months, the 
institution could, with the agreement of the injured person, substitute 
a lump sum for the daily benefits. This amount of benefits paid for 
temporary disabiUty must be deducted from the amount due for 
permanent disability or death when such results finally develop. 
Furthermore, maximum limits of indemnity were estabhshed by the 
regulations, which meant putting a limit to the amount of insurance. 
For cases of death and total permanent disabUity the limit was 
10,000 lire ($1,930), and for temporary disability 5 lire (97 cents) 
per day. 

The national insurance institution may also insure the employers 
against the risk of employers' liabihty, but the limit of insurance 
must not exceed 10,000 lire ($1,930). The maximum limit may be 
made smaller by the executive committee, and must be specified in 
the policy. In any case the institution insures to the employer the 
payment of only nine-tenths of the judgment in favor of the employee, 
and m case of 7 classes of greater risk (out of the 14 classes intci 
which all the establishments were divided) only eight-tenths. Thus 
the interest of the employer in preventing severe industrial accidents 
IS not entirely eliminated, even if the emplover carries insurance 
against employers' Habihty. 

With the introduction of compulsory compensation for accidents 
by the law of 1898 and subsequent acts the compensation for acci- 
dents under contracts made in compliance witli these laws are regu 
lated; but there is in addition a considerable amount of voluntary 
msurance, for which the rates of compensation are arbitrary. 

SOURCES OF INCOME. 

The National Accident Insurance Institution is a seK-supporting 
institution. Its income, besides the small revenuelrom interest on 
the endowment and other investments, is derived from the premiums 
paid by the persons contracting for insurance. As the law requires 






CHAPTER VII. — workmen's INSURANCE IN ITALY. 1749 

the employers to meet this cost in all industries specified, by far the 
largest share now comes from the employers. The State does not 
contribute directly to the resources of the insurance institution. A 
certam amount of individual insurance against accidents is still writ- 
ten by the institution. Employees in industries not covered by the 
laws of 1898 and 1903 may thus obtain protection for themselves at 
their own expense. Employers may voluntarily insure workmen at 
their own expense, and special provisions were also made for collec- 
tive insurance of the membership of mutual benefit societies. 

PREMIUMS. 

The study of the premiums and their development is of great 
importance because it throws some light upon the problem of cost of 
accident insurance. During the 25 years of its existence the pre- 
miums of the National Accident Insurance Institution have under- 
gone many revisions, mainly with a view of their increase. 

The general scale of premiums depended upon the forms of insur- 
ance, m addition to the variation of the trade risk. Three forms of 
msurance were recognized at the beginning of the operations— indi- 
vidual insurance, simple collective insurance, and combined coUective 
insurance. Individual insurance is a contract entered into with an 
individual employee, and guaranteeing him a specified sum in case of 
injury sustamed from an industrial accident. Simple coUective 
msurance may be carried either by an employer for his employees an 
employer and his employees jointly for the benefit of the latter or 
an association of workmen for the benefit of its members Finally 
combmed collective insurance is carried either by the employer indi- 
vidually or jomtly with his employees in favor of the latter, and in 
addition to the regular benefits also insures the employer against 
judgments arising out of employers' liability. Insurance against 
employers' habihty only was not permitted. 

The insurance premiums differed for each of these three forms of 
msurance and also varied accordmg to tlie degree of risk. For these 
purposes all industries and classes of employees were divided into 14 
classes on the basis of the imperfect accident statistics obtamable at 
the time, and a long fist of such industries and form of work and 
employment was prepared, which contained nearly 700 items. In 
addition separate rates were quoted per i)erson insured and per 1 000 
lu-e ($193) of wages paid, the former for all forms of insurance and 
the latter only for coUective insurance. As insurance may be written 
either with or without the inclusion of temporary disability benefits 
separate premium rates were prepared for both forms. ' ' 

The first tariff of premiums was approved by the councU of the 
mstitution m February, 1884; it was sUghtly modified and raised in 



i^SMBib 



1750 



REPORT OF THE COMMISSIONER OF LABOR. 



December, 1888. Both tariffs are given for the different forms of 
insurance in the following table. Tariff A was appUcable to indi- 
viduals insuring themselves against the results of industrial acci- 
dents. Tariffs B and D were intended for collective insurance. 
Tariff B granted the right to the same comj)ensation as tariff A, but 
it was lower because of the collective nature of the insurance. In 
tariff D the rates are for compensation to tlie employee and also the 
insurance of the employer against liability within the limits speci- 
fied, namely, up to 10,000 lire ($1,930). For the seven lower-risk 
groups the insurance covered only nine-tenths and for the seven 
higher-risk groups only eight-tenths of the judgment in favor of the 

employee. 

For all the three classes of insurance the rates of compensation 
could be doubled, trebled, etc., by corresponding increases of the 
premium. 

Tariffs B and D can be applied conveniently only to permanent 
employees and would present many practical difficulties with a shift- 
ing body of employees. These rates were therefore open to perma- 
nent bodies, such as mutual benefit associations or similar organiza- 
tions, or to such employers as were able to furnish complete lists of 
names of employees. In all cases the application of these tariffs 
required a special permit of the administrative council of t]m national 
insurance institution. 

The policies for which the premium rates shown in the following 
tabl^ were paid included a death benefit of 1,000 hre ($193), a total 
permanent disabihty benefit of 1,000 lire ($193), a partial permanent 
disability benefit in proportion to the reduction of earning power, a 
temporary disabihty benefit of 1 lira (19.3 cents) per day, and an 
employers' habihty insurance up to 10,000 lire ($1,930), but not more 
than nine-tenths of the judgment for classes 1 to 7 and eight-tenths 
for classes 8 to 14. 



1/ 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1751 

ANNUAL PREMIUM RATES PER PERSON INSURED, AS APPROVED IN 1884 AND IN 
1888. BY FORM OF INSURANCE AND CLASS OF RISK. 

ISource: BoUettlno dl Notizle siil Credit© e sulla Previdenza, 1884. Cassa Nazionale d'AssicurazIone per 
gl'Infortuni degli Operai sul Lavoro. Regolamento dei premi e delle indennita e tarifle. Milano, 1898.] 



Form of insurance. 


Premium rate per person insured in risk class — 


I 

Lire. 
1.00 

1.50 

.60 
.72 

.90 
L08 

1.03 
1.39 


II 


m 


IV 


V 

Lire. 
1.85 

2.77 

1.12 
1.28 

1.68 
1.92 

2.17 
2.81 


VI 

Lire. 
1.99 

2.99 

1.28 
1.44 

1.92 
2.16 

2.44 
3.16 


VII 

Lire. 
2.24 

3,36 

1.44 
1.60 

2.16 
2.40 

2.95 
3.75 


VIII 

Lire. 
2.73 

4.13 

1.60 
1.99 

2.40 
2.99 

3.54 
4.54 


IX 


X 


XI 


xn xiTi 


XIV 


Individual insurance (tariff 
A), 1884: (a) 

Without temporary dis- 
ability benefit 

With temporary disabil- 
ity benefit 


Lire. 
1.12 

1.68 

.72 
.80 

1.08 
1.20 

1.41 
1.81 


Lire. 
1.35 

2.03 

.80 
.96 

1.20 
1.44 

1.55 
2.03 


Lire. 
1.57 

2.35 

.96 
1.12 

1.44 

1.68 

1.87 
2.43 


Lire. 
3.29 

4.93 

1.99 
2.40 

2.99 
3.60 

4.47 
5.67 


Lire. 

4.60 

6 90 

2.40 
3.20 

3.60 
4.80 

6.37 
7.97 


Lire. 
6.13 

9.20 

3.20 
4.80 

4.80 
7.20 

8.94 
^\ "id 


Lire. Lire. Lire. 

8.0510.0513.00 

1 
1 

19 OK i<^ no 10 RA 


Simple collective insurance 
(tariff B) (exclusive of em- 
ployers' liability): 
Without tempo-1 , qq. 
rary disability l}^- 

beneflt •'jlSSS.. 

With temporary), CQ. 
disability bene-J}|°|- 

Comblned collective insur- 
ance (tariff D) (with em- 
i ployers' liability), 1888: (6) 
1 Without temporary dis- 

1 ability benefit 

1 With temporary disabil- 
1 Ity benefit 


4.80 
7.20 

7.20 
10.80 

12.40 
16.00 


iW. W^ ±it. uu 

8.0012.00 
9.6012.00 

12.00;18.00 
14.4018.00 

15.8619.33 








-ittl. «M» 



a Not changed in December, 1888. 



b No corresponding tariff in 1884. 



The normal tariffs used were those based upon the amount of the 
wage expenses, and quoted per 1,000 lire ($193) of wages paid, rather 
than those based on the number of persons employed. According to 
the first tariflf of 1884, the amount of compensation agreed upon in 
case of death or total permanent disabihty could be either one, two, 
three, or four years' salary; partial permanent disabihty was com- 
pensated proportionately, and for temporary disability the daily 
allowance was equal to one-thousandth of the insurance in case of 
death. 

The tariff C as quoted covered insurance for all the possible conse^ 
quences of industrial accidents — death, permanent disabihty, and 
temporary disability — but if it was desired to exclude all provision for 
temporary disability the premium rates were reduced one-third. 
This form of insurance included employers' liability. It was evi- 
dently expected in the beginnmg that the payments connected with 
this form of insurance would be heavy. Thus two tariffs were pre- 
pared, C and C\ the former insuring only nine-tenths of the employers' 
hability and C* insuring the entire hability ; and the difference between 
these two tariffs was considerable, as may be seen from the following 
table. Moreover, such unlimited insurance of employers' habihty 
was permitted only for the classes of lower risks, I to X, so that for 
the classes XI to XIV the rates are equal m both tariffs C and O. 
67725°— VOL 2—11 17 



1752 



REPORT OF THE COMMISSIONER OF LABOR. 



The premiums for various amounts of insurance were not proj)or- 
tionate to the amount of compensation, which is partly explained by 
the inclusion of the fixed charge for employers^ liability. 

The premiums shown in the next table were for the following 
benefits: 

(1) In case of death or total permanent disability, an amount equaj 
to the specified number of times the annual wages. 

(2) In case of partial permanent disability, a proportionate part of 
the sum above mentioned, according to the reduction of earning power. 

(3) In case of temporary disability, a daily benefit equal to one- 
thousandth part of that amount, but not over the daily wages and 
not over 5 lire (96.5 cents), beginning with the thirty-first day of 
disability and up to three hundred and sixty days. 

(4) A guarantee of employers' liability, unlimited (tariflF 0*) or up 
to nine-tenths (tariff C). 

ANNUAL PREMIUM RATES PER 1,000 LIRE ($193) OF WAGES PAID ACCORDING TO THE 
TARIFF OF 1884, BY FORM AND AMOUNT OF INSURANCE AND CLASS OF RISK. 

[Source: Bollettino di Notlzie sul Credito e sulla Prevldenza, 1884.] 



Form and amount of 
insurance. 



Combined collective insur- 
ance, with insurance of em- 
E lovers' liability limited 
) nine-tenths (tariff C). 
Amount of policy: 

1 year's wages 

2 years' wages 

3 years' wages 

4 years' wages 

Combined collective insiu"- 

ance, with unlimited in- 
surance of employers' lia- 
bility (tariff Ci). 
Amount of policy: 

1 year's wages 

2 years' wages 

3 years' wages 

4 years' wages 



Premium rate per 1,000 lire ($193) in risk class- 



Lire 
1.30 
2.05 
2.75 
3.40 



1.44 
2.28 
3.06 
3.78 



II 



Lire. 
1.39 
2.49 
3.32 
4.10 



1.54 
2.76 
3.69 
4.56 



III 



Lire. 
1.81 
2.81 
3.73 
4.56 



2.01 
3.12 
4.14 
5.07 



IV 



Lire 
2.03 
3.24 
4.37 
5.40 



2.25 
3.60 
4.86 
6.00 



Lire. 
2.43 
3.83 
5.13 
6.35 



2.70 
4.26 
5.70 
7.05 



VI 



Lire. 

2.81 
4.40 
5.89 
7.29 



3.12 
4.89 
6.54 
8.10 



vn 



Lire 
3.16 
4.97 
6.64 
8.18 



3.51 
5.52 
7.38 



vm 



Lire 
3 75 
5 72 
7 56 
9.18 



4 14 

(.. 36 
H 40 



9. 09! 10 20 



IX 



Lire. 
4.54 
7.02 
9.32 

11.39 



5.04 

7.80 

10.35 

12.66 



Lire 

5.67 

8.64 

11.34 

13.77 



6.30 

9.60 

12.60 

15.30 



XI 



Lire. 

7.97 
11.88 
15.39 
18.50 



(a) 
(«) 
(«) 
(«) 



XII 



Lire. 
11.34 

17.28 



xm 



Lire. 

16.88 

27.00 



22.li836.45 
27.64 45.23 



(•) 



XIV 



Lire. 
25.33 
40.50 
54.68 
67.68 



(«) 
(a) 
f«) 
f«) 



a Unlimited Insiu-ance of employers' liability not permitted for this class. 

These tariffs per 1,000 lire ($193) of wages paid, as the most fre- 
quently used, were most modified in 1888. Tariff C^ was altogether 
abolished, it being considered undesirable to grant unlimited insurance 
of employers' liabiHty. Tariff C, for combined collective insurance 
with limited employers' liability, became tariff E, and a new tariff for 
simple collective insurance, per 1,000 lire ($193) of wages paid, was 
prepared. 

The determination of the compensation in multiples of the annual 
earnings was thought too rigid, and a more flexible system of multiples 
of daily wages was substituted, eight classes being recognized instead 
of the previous four classes. As in the preceding tariff of 1884, tariffs 



rj 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1753 

* 

C and E cover insurance for all the possible consequences of industrial 
accidents. If it was desired to exclude temporaiy disability the 
premium rates according to tariff C were reduced by one-third. As 
Tariff E included a charge for employers' liability insurance, it could 
be adjusted for the exclusion of temporary disability by deducting 
from the quotation of tariff E, which is to be used, one-third of the 
corresponding quotation from tariff C. 

The premiums shown in the next table were for benefits, as follows: 

(1) In case of death or total permanent disability, an amount equal 
to the specified number of times the daily earnings. 

(2) In case of partial permanent disability, a proportionate part 
of the sum above mentioned, according to the reduction of earning 
power. 

(3) In case of temporary disability, a daily benefit equal to one- 
thousandth of that amount. 

(4) Under the combined collective insurance policy, a guarantee of 
employers' liability up to 10,000 lire ($1,930), not exceeding nine- 
tenths of the judgment for classes 1 to 7 and eight-tenths for classes 
8 to 14. 

ANNUAL PREMIUM RATES PER 1,000 LIRE ($193) OF WAGES PAID, ACCORDING TO THE 
TARIFF OF 1888, BY FORM AND AMOUNT OF INSURANCE AND CLASS OF RISK. 

ISom-ce: Cassa Nazionale d'Assicurazione per gl' Infortuni degli Operai sul Lavoro. Regolamento dei preml 

e delle indennit^ tarifle. Milano, 1898.J 



Form and amomit of insur- 
ance. 



Simple collective insurance 
(tariff C): 
Amount of policy — 

300 days' wages 

400 days' wages 

500 days' wages 

600 days' wages 

700 days' wages 

800 days' wages 

900 days' wages 

1,000 days' wages 

Combined collective msvir- 
ance (tariff E): 
Amount of policy — 

300 days' wages 

400 days' wages 

500 days' wages 

600 days' wages 

700 days' wages 

800 days* wages 

900 days' wages 

1,000 days' wages 



Premium rate per 1000 lire ($193) in risk class- 



Lire. 



.08 
47 
.88 
29 
.60 
.91 
3.24 
3.56 



1.39 
1.75 
2.12 
2.49 
2.76 

3. as 

3.32 
3.60 



II 



Lire. 
1.20 
1.60 
2.01 
2.43 
2.81 
3.19 
3.58 
3.93 



1.81 
2.14 
2.47 
2.81 
3.11 
3.41 
3.73 
4.00 



III 



Lire. 
L44 
1.91 
2.38 
2.87 
3.32 
3.78 
4.24 
4.64 



2.03 
2.43 

2.m 



3.62 
4.00 
4.37 
4.72 



IV 



Lire 

1.68 

2.24 

2.1 

3.36 

3.88 

4.41 

4.94 

5.44 



2. 
2.! 

3.; 



43 
90 
37 
3. 241 3. 83 
26 
69 
13 
54 



4. 
4. 
5. 
5. 



Lire. 
1.92 
2.56 
3.20 
3.84 
4.42 
5.00 
5.66 
6.24 



2.81 
3.34 
3.87 
4.40 

4.87 
5.34 
5.89 
6.36 



VI 



Lire. 
2.16 
2.88 
3.62 
4.34 
5.03 
5.71 
6.39 
7.02 



3.16 
3.76 
4.37 
4.97 
5.53 
6.09 
6.(>4 
7.15 



vn 



Lire. 
2.40 
3.23 
4.06 
4.88 
5.66 
6.44 
7.23 
7.94 



3.75 4. 



4.41 
5.07 
6.72 
6.a3 
6.94 
7.56 
8.10 



VIII 



Lire. 
2.99 



01 
03 
04 
00 
97 



8.92 
9.80 



6. 
6. 
7. 
7. 
8. 
9. 
10. 



54 
37 
20 
02 
79 
56 
32 
00 



IX x 



Lire. 
3.60 

4.85 
6.10 
7.35 
8.51 
9.67 
10.83 
11.90 



Lire. 

4.80 

6.50 

8.20 

9.89 

n.46 

13.03 

14.59 

16.03 



5.67 

6.66 

7.65 

8.64 

9.54 
10.4414. 
11.34 15. 
12.15 16. 



7. 

9. 
10. 
11. 

13. 



97 

28 
58 
88 
05 
22 
39 
43 



XI 



Lire. 
7.20 
9.69 
12.19 
14.69 
17.00 
19.32 



XII XIII 



Lire. 

10.80 

15.46 

18. 12 

21.77 

25.19 

28.61 



21. 64 32. 04 
23.77 35,22 



11. 
13. 
15. 
17. 
19. 
20. 
22. 
24. 



34 16. 
32,19. 
30,22. 
28 25. 
OS '27. 
8s 30. 
68 33. 
30 35. 



02 




79 



87 



Lire. 

14.40 

19.21 

24.02 

28.84 

33.37 

37.91 

42.44 

46.6 



00 20. 60 



24. 

28. 



02 32. 



36. 



56 40. 
34 44. 



47. 



XIV 



Lire. 

18.00 

23.97 

29.95 

35.91 

41.56 

47.21 

52.84 

58.10 



•25.33 
.39 
35. 45 
40.50 
45.23 
.96 
00154.68 
44 59.08 



69 30. 

72 

76 

51 

26149 



The new conditions imposed by the accident insurance law upon 
the National Accident Insurance Institution necessitated the unm^ 
diate preparation of a new premium tariff to conform with the cost 
of msurance under the new law. As the law of 1898 did not cover 
all industrial establishments and did not altogether destroy the oppor- 
tumties for voluntary insurance, the old tariffs remained in force and 



1754 



REPORT OF THE COMMISSIONER OF LABOR. 



> 



a new tariff of rates (tariff F) was added for insurance in compliance 
with the requirements of the law. Tariff F, shown in the table fol- 
lowing, includes rates for insurance with employers' liability (com- 
bined collective insurance) and without such liability (simple collective 
insurance). Somewhat higher rates are also quoted in case the 
employer desires to grant for temporary disability a somewliat higher 
daily allowance than one-half of the daily wages as provided for by 
the law. 

The tariff was approved by the executive council of the insurance 
institution on September 10, 1898, and by royal decree of October 30, 
1898. It was preliminary in its character, not being based upon any 
very exact data. The old classification of industries and occupations 
was preserved with only a few changes, which were all, however, in 
the nature of transfers from a lower to the next higher risk group. 

The tariffs are seen to be higher than the highest rates quoted in 
the highest tariff of 1888 — that providing com])ensation of 1,000 times 
the daily wages for death. But, nevertheless, the premium securing 
all the forms of compensation guaranteed by the law of 1898 amounts 
to less than 1 per cent of the wage expense for the first seven risk 
groups. It is less than 2 per cent in Groups VIII, IX, and X, and 
only in the Groups XI to XIV does it rise to a very high level. 

ANNUAL PREMIUM RATES PER 1,000 LIRE ($193) OF WAGES PAID, FOR INSURANCE 
ACCORDING TO THE REQUIREMENTS OF THE LAW OF MARCH 17, 1898, AND ALSO 
FOR AN INCREASE OF AMOUNT OF COMPENSATION FOR TEMPORARY DISABILITY 
(TARIFF F). 

[Source: Maurice Bellom, Les Lois d' Assurance Ouvri^re k rEtranger. n. Assurance contre les Acci- 
dents, 4 »"«°e partie. For benefits covered by the premliuns below, see p. 1753. J 



Form and amount of 


Premium rate per 1,000 lire ($193) in risk class— 


insurance. 


I 


n 


ni 


IV 


v 


VI 


VII 


VIII 

Lire. 

11.48 
11.81 
12.13 
12.46 

12.07 
12.34 
12.60 
12.85 


IX 

Lire. 
13.93 
14 35 
14 74 
15.12 

14 70 
15.03 
15.33 
15.63 


X 


XI 


Xtl 

Lire. 
41.26 
42.48 
43.62 
44 76 

43.21 
44 21 

45. 13 
46.06 


XIII 

Lire . 
54 68 
56.28 
57.79 
59.31 

57.01 
58.36 
59.61 
6a 86 


XIV 


Simple collective insurance, 
with temporary disability 
benefits amounting to— 

50 per cent of daily wages. 

60 per cent of daily wages. 

70 per cent of daily wages. 

80 per cent of daily wages. 
Combined collective insur- 
ance, with temporary dis- 
ability benefits amounting 
to- 

50 per cent of daily wages. 

60 per cent of daily wages. 

70 per cent of daily wages. 

80 per cent of daily wages. 


Lire. 
4 19 
4.32 
4.43 
453 

4 31 
443 
4 52 
4 61 


Lire. 
460 
4 74 

4 87 
499 

4 82 
4 94 
5.04 
5.14 


Lire. 
5.43 
5.60 
5.75 
5.90 

5.66 
5.80 
5.93 
6.05 


Lire. 
6.37 
6.56 
6.73 
6.91 

6.66 
a82 
6.% 
7.10 


Lire. 
7.31 
7.52 
7.71 
7.91 

7.65 
7.83 
7.98 
a 14 


Lire. 

S.23 
8.47 
8.70 
8.92 

8.61 
8.81 
8.99 
9.18 


Lire. 
9.29 
9.57 
9.83 

iao9 

9.79 
10.01 
10.21 
10.41 


Lire. 
18.76 
19.33 
19.85 
20.37 

19.96 
20.39 
20.78 
21.17 


Lire. 
27.83 
2&67 
29.44 
3a 21 

29.40 
30.06 
30.66 
31.26 


Lire. 

6&08 
7a 07 
71.95 
73.84 

7a 84 
72.52 
74 10 
75.67 

1 



The rates quoted above were preliminary, and the administration 
of the National Accident Insurance Institution was ordered to pre- 
pare a new schedule of premium rates within two years. On Novem- 
ber 1, 1900, this time was extended to October 20, 1902, and on 
September 6, 1902, again extended to December 31, 1903, in view 
of the preparation for the amendment of the law.(®) The new tar- 

fl Bollettino di Notizie eul Credito e sulla Previdenza, 1902. 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1755 

iffs were finally approved by the superior council of the institution 
on November 28, 1903, and by royal decree on December 3, 1903. 
Accompanying these new premiums is a new set of regulations con- 
cerning premiums and compensation. 

According to these new regulations, the following six forms of 
insurance are written by the institution, which are essentiaUy the 
same as in the past. 

A. Combined collective insurance according to the law as amended 
and inclusive of employers' Hability. 

B. Simple coUective insurance according to the law, but exclusive 
of employers' habihty. 

C. Combined collective insurance for a stipulated rate of com- 
pensation and including employers' Habihty (for industries not cov- 
ered by the law). 

D. Simple coUective insurance for a stipulated rate of compensa- 
tion but exclusive of employers' Habihty (for industries not covered 
by the law). 

E. Individual insurance according to the law and exclusive of 
employers' Habihty. 

F. Individual insurance for a stipulated rate of compensation. 

As a rule, to which specific exceptions may be made bv the insti- 
tution, the coUective forms of insurance embrace aU workmen 
employed by the establishment who come under the provisions of 
the laws of March 17, 1898, and June 29, 1903. But simple coUec- 
tive msurance may also be taken by a workmen's mutual benefit 
society. AU coUective insurance must complv with the general 
conditions of the poHcy as approved by the minster of agriculture 
industry, and commerce. The conditions of the individual poHcv 
are prepared by the superior council of the institution, conforming 
as far as possible to those of the coUective policy. 

The premium rates were radicaUy changed bV the new tariff \ 
general increase Was found necessary because of the gradual rise in 
tae number of accidents compensated. Besides, the twentv vears' 
experience of the institution permitted a more careful classification 
ot mdustries and occupations according to then- accident risks 
instead of 14 groups, the new tariff presents 32 groups. In the 
table foUowing are presented the two basic tariffs, A and D for the 
'^f^^fr^J ""^ ^^^^^^^ «f insurance. Tariff A is quoted per 1,000 lire 
($193) of wages paid and includes the legal insurance as weU as 
employers' habihty. Tariff D is quoted per emplovee, and cover, 
under the corresponding class of insurance the foUowing amounts of 

Z7('ZT'''' "" '^'' ^^ ^'"'^ ^^ '""'^^ permanent disabUity 1,000 
dLabni^ev 1 !^ P^P^^^^^^^t^ a^iount in case of partial permanent 

Sf "^Ci A^-'" ^''•' ''""''^ P^^ ^^y ^^ '^^ -^ temporary dis- 
ability. Tariff A is practicaUy of the greatest importance 



1756 



REPOET OF THE COMMISSIONER OF LABOR. 



The premium under tariff B (that is, exclusive of employers* lia- 
bility) is obtained by reducing the corresponding premium under 
tariff A by 3 per cent. 

Insurance under tariffs C and D is intended for industries not cov- 
ered by the law. Premiums for this form must be quoted i)er per- 
.son per annum. If the compensations stipulated are identical with 
those required by the law, then the premiums imder tariffs A and B 
may be applied to the annual earnings of eacli employee. Tariff D 
is apphcable when the stipulated compensation is as given above. 
If it is desired to include the insurance of employers' Uability, 10 per 
cent must be added to these rates. If other amounts of compensa- 
tion are stipulated, the institution may quote different rates. For 
individual insurance the same rates are applied. 

The law defines the daily allowance for temporary disability as 
half of the daily earnings. If it is desired to increase this to 80 per 
cent of the earnings, the rate of the second higher risk gi-oups is 
apphcable for the first six groups, and the next higher group for the 
remaining groups. Eight-tenths is the normal maximum of the daily 
earnings insurable, though in exceptional cases nine-tenths may be 
stipulated; the daily allowance must not exceed 5 lire (96.5 cents), 
unless one-haK of the wages exceeds this limit. The other maximums 
estabhshed are: For death, 10,000 lire ($1,930), and for total 
permanent disabihty, 12,000 Ure ($2,316). 

ANNUAL PREMIUM RATES APPROVED DECEMBER, 19<»3, BY CLASS OF RISK. 

[Source: Bollettino di Notizie sul Credito e suUa Prevldenza, 1904. For benefits covered by the premiums 

below see p. 1755.] 





Pre- 


Premium per 


each employee. 




Pre- 


Premium per each employee. 




mium 
per 








mium 
per 
















Risk 


1,000 
lire of 


Including com- 


Exclusive of 


Risk 


1,000 
Ure of 

wages 
paid 

(tariff 
A). 


Including com- 


Exclusive of 


class. 


pensation for 


compensation 


class. 


pensation for 


coini»ensatioii 




wages 
paid 
(tariff 
A). 


temporary 


for temporary 




temporary 


for tt'mt>orary 
disability 
(tariff D). 




disabiUty 


disability 
/-tariff D). 




disability 




(tariff D). 




(tariff D). 




Lire. 


Lire. 




Lire. 






Lire. 


Lire. 




Lire. 




I 


2.50 


1.00 


SO. 19 


LOO 


SO. 19 


XVII... 


26.00 


8.40 


SI. 62 


6, .50 


SI. 06 


II 


3.00 


1.25 


.24 


1.10 


.21 


XVIII.. 


30.00 


9.60 


1.83 


6 00 


1.16 


Ill 


4.00 


1.50 


.29 


1.20 


.23 


XIX.... 


35.00 


10.60 


2.05 


6.70 


1.29 


IV 


5.00 


1.75 


.34 


L30 


.25 


XX 


40.00 


11.80 


2.28 


7.60 


1.45 


V 


6.00 


2.00 


.39 


1.40 


.27 


XXI. ... 


45.00 


13.00 


2.51 


8.50 


1.64 


VI 


7.00 


2.30 


.44 


1.60 


.31 


JCXII... 


50.00 


14.20 


2.74 


10.00 


1.93 


VII 


8.00 


2.60 


.50 


1.80 


.35 


XXIII.. 


55.00 


15.40 


2.97 


11,50 


3.22 


VIII.... 


9.00 


3.00 


.58 


2.00 


.39 


XXIV.. 


65.00 


16.60 


3.20 


13.00 


3.51 


IX 


10.00 


3.30 


.64 


2.20 


.42 


XXV... 


75.00 


18.00 


3.47 


14.50 


3.80 


X 


11.00 


3.60 


.69 


2.40 


.46 


XXVI.. 


90.00 


20.00 


3.86 


16.50 


3.18 


XI 


12.00 


4.00 


.77 


2.60 


.50 


XXVII. 


105.00 


25.00 


4.83 


19.00 


3.67 


XII 


14.00 


4.60 


.89 


3.00 


.58 


XXVIII 


125.00 


3L00 


5.98 


22.00 


4.25 


XIII.... 


16.00 


5.30 


1.02 


3.50 


.68 


XXIX -. 


150.00 


38.00 


7.33 


25.00 


4.83 


XIV.... 


18.00 


6.00 


1.16 


4.00 


.77 


XXX... 


200.00 


48.00 


9.26 


30.00 


6.79 


XV 


20.00 


6.60 


1.27 


4.60 


.87 


XXXI.. 


250.00 


60.00 


11. .58 


40.00 


7.72 


XVI.... 


23.00 


7.50 


1.45 


5.00 


.97 


XXXII. 


,300.00 


75.00 


14.48 


56.00 


10.62 



Note.— Tariff B may be derived from tariff A by a reduction of 3 per cent. Tariff C may be derived from 
tariff D by an increase of 10 per cent. In insurance forms £ and F tariffs B and D, respectively, may be 
used. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1757 

The Hst of industries and occupations with the risk class under which 
each has been placed is given on page« 1758 to 1769. As is mdicated 
m the many notes, it is not absolute. Many conditions may be taken 
into consideration for the purpose of mcreasing the premium by 
placmg the mdustry or occupation in a higher risk group.' In 
addition to these specific qualifications, a general rule permits the 
increase or decrease of the premium under the foUowmg circum- 
stances : Increase of premium m case of use of mechanical or circular 
saws, use of motors or dangerous machinery, extensive use of means 
of transportation, work on scaffolds or stagmgs or in any other 
position m which falls are possible, work in place when coUapse of 
materials is Ukely, use of explosives, corrosive substances, com- 
pressed gases, mflammable Kquids, or other dangerous substances 

Decrease of premium m case of use of electric motors, especially 
for the purpose of dnvmg machmery; use of special and efficient 
safety appliances, or other conditions evidently reducmg the risk of 
the industry. 

Whenever several distinct processes differing as to then- degree of 
risk are combmed in one establishment, the premium may be com- 
puted m the foUowing way: The wage expense in each department 
IS multiplied by the correspondmg premium rate, and the sum of the 
products IS divided by the total wage expense. Where such computa- 
tion IS impossible, a simUar computation, based upon the number of 
employees m the various departments, may be made. 

Furthermore, the executive committee of the national insurance 
mstitution is permitted to add new mdustries to those in the list 
and even transfer mdustries from one risk group to another, upon 
txie basis of experience acquired. 

The institution is to write insurance asked for by any mdustry to 
which the law of obhgatory insurance applies, but may declme the 
insurance in case of industries not subject to the law if the risk 
appears unfavorable, because of the character of the persons to be 
insured, their age, or their condition of health, if they object to a 
sutticient mcrease of the premium. 

\\T^(^^T'''\ ^. •*^' ^'T^"^ ^' p"" ^^'^^' ^ ^p^^^^i ^^'^^^ ^^ two 

Zf :l r^^' 'V^^'^"^ "^"^ ^^^ P^^^^^' ^^^^ the premium does 
^IT ,^5^^^(^9•^5); of 5 lire (96.5 cents) when the premium is 

fo L ^.^^.^^ r (^,?-^^l. ^^^ ^^^ ^«^« than 200 lire ($38.60) ; and of 
Hrp7A« Aof M ^^^'""'^ contracting for a premium of over 200 
lire C$d8.60). No special charge is levied upon mdividual pohcies. 



1758 



REPORT OF THE COMMISSIONER OF LABOR. 



Finally a minimum premium is established for all policies. For 
the individual policies this minimum amounts to only 1 lira (19.3 
cents), and for the collective policies the minimum is as follows: 

MINIMUM ANNUAL PREMIUMS FOR COLLECTIVE INSURANCE. 



For risk classes— 


Minim lun annual 
premium allowable. 


ItoV 




Lire. 
5 
M) 
19 

ao 

30 
40 
BO 


$0,965 


VI to X. 


1.930 


XI to XV. 


2.895 


XVI to XX. 


3.860 


XXI to XXIII 


6.790 


XXIV to XXVI 


7 720 


XXVII to XXXII 


9.650 







In the following table are shown the industries and occupations 
included in each of the 32 risk classes and for each class the annual 
premium rate in per cent of wages paid. The rates, which were 
approved in December, 1903, are for combined collective insurance 
according to the law as amended, including insurance of employers' 
liability. 

CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 

OF RISK; AND PREMIUM FOR EACH RISK CLASS. 

[Source: Cassa Nazionale d' Assicurazione per gl' Infortuni degli Operai sul Lavoro . Regolamento dei premi 
e delle indennit^ e tarifle, 1903. For benefits covered by these premiums, see page 1755.] 




3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 



14 
15 

16 
17 
18 

19 



AGRICULTXJRE, ANIMAL INDUSTRY, AND SILVICULTURE. 

Agriculture: 

Agriculture, with machinery, including the entire personnel of the estab- 
lishment («) 

Agriculture, without machinery, including the entire personnel of the 
establishment 

Steam plowing 

Macliine seeding • 

Machine mowing 

steam thrashing 

Steam pressing of fodder 

Steam chopping of fodder 

Tilling for hemp and flax with machinery 

Tilling for hemp and flax without machinery 

Drying rooms, with machinery 

Drying rooms, without machinery 

Engineers and firemen attending to steam engines used for agricultural 
work not mentioned in the tariff (irrigation, drainage, cleaning, and 
grinding of cereals, pressing, etc.), including accessory machinery when 
it does not present any special danger 

Hort ieulture, viticulture, gardening, and other work of a sim ilar nature ( b) 

Dissipating hailstorms 

Animal industry: 

Cattle raising, driving, and care of stock 

Poultry raising 

Silkworm raismg, with their removal from the leaves of the mulberry 
tree, and their transportation 

Silkworm raising, without the removal from the leaves of the mulberry 
tree, and their transportation 



XX 

XII 
XX 

XIV 

xX 

XXII 
XVIII 

XXV 

XVIII 

VIII 

xm 

IX 



XIX 

VIII 

XXVII 

XXI 

I 



IX 



4.0 

1.4 
4.0 
1.8 
4.0 
5.0 
3.0 
7.5 
3.0 
.9 
1.6 
1.0 



3.5 

.9 

10.5 

4.5 
.25 

1.8 

1.0 



I 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1759 

CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 
OF RISK; AND PREMIUM FOR EACH RISK CLASS-Continued. 



In- 
dus- 
try 
num- 
ber. 



20 
21 
22 

23 
24 



25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 

36 
37 
38 
39 
40 
41 
42 

43 
44 
45 
46 
47 
48 

49 
50 
51 
52 

53 
54 
55 
56 
57 
58 
59 
60 

61 
62 
63 
64 

65 
66 
67 
flS 
09 
70 
71 
72 

73 

74 



Industry. 




Annual 

premium 

rates in 

per cent 

of wages. 



AGRICULTURE, ANIMAL INDUSTRY, AND SU.VICULTURE— Concluded. 

Silviculture: 

Tree felling in the mountains (a) 

Tree fell ing on the plains ( 6 ) 

Trhnming and gathering flowers and seed and other work performed upon 
1/116 trccs. -----.----,..-.......,_... 

Manufacture of charcoal, with chopping of wood! 

Manufacture of charcoal, without chopping of wood ...... . . , . . . . . , . . . . .' ', 



FOODSTUFFS, OILS, AND TOBACCO. 

Beverages, alcohols, and ice: 

Effervescent waters 

Mineral waters '.'.'.'.'. 

W ines ( c) ^ ...""" ""]."[] 

Breweries 

Manufacture of malt !.".!.!."!.]! 

Manufacture and refining of aicohol! .!"!.!.".!"'.""[. 

Manufacture of spirits, liquors, exclusive of the distiiling withmachinerv 

Same as above, without machinery 

Sirups 

Vinegar 

Artifacial ice .'.'...'..... 

Coffee and spices: 

Coffee drying and roasting, with machinery 

Coffee drying and roasting, without machinery ...".. 

Coffee substitutes, with machinery 

Coffee substitutes, without machinery 

Spices, pulverizing and grinding ". 

Liquors 

Mustard ]!!.!'!!.'.]!!! 

Milk and its products: 

Condensed milk, including manufacture of the cans. . 

Condensed milk, exclusive of the manufacture of the cans 

Milk, sterilization and modification 

Manufacture of cheese, including cattle raising 

Manufacture of cheese, exclusive of cattle raising, with machinery 

Manufacture of cheese, exclusive of cattle raising, without machinerv 
Slaughtermg and salting of meats: 

Pubhc slaughterhouses, including the entire personnel 

Salting meat, including slaughtering 

Salting, without slaughtering, with machinery 

Salting, without slaughtering, without machinery 

Flour grinding, rice polishing, baking and pastes: 

Flour-grinding mills, stationary 

Flour-grinding mills, floating 

Pounding rice 

Bakeries, with machinery ".["."" 

Bakeries, without machinery 

Manufactvire of wafers [[ 

Food pastes, with machinery ].""!"]' 

Food pastes, without machinery '. 

Vegetable and animal oils: 

Animal oils 

Vegetable oils in general, large establishments 

Vegetable oils in general, small establishments 

Vegetable oils in general, extraction of residual oils by means of sulphur 
Pastry bakmg, chocolate, preserves, and food products: 

Pastry baking and confectionerv, with machinery . . . 

Pastry baking and confectionerv, without machinery '. 

Chocolate and almond cakes, with machinery 

Chocolate and almond cakes, without machinery . . 

Preserves, including manufacture of cans 

Preserves, exclusive of manufacture of cans 

Prepared food products, with machinery 

Prepared food products, without machinerv . . 
Tobacco: 

Tobacco manufactures 

Sugar: 

Sugar factories and refineries 



a The premium may be reduced when the use of mechanical motors is limited. 
b If machinery is used the premivun must be increased. 



o With or without transportation. 

nfrlrf i^^^-^^J^*'"^ transportation; the premium may be reduced 
OGere sufficient ^arantee of security. 

motore."^^"™ ^^ increased if there is connected with it any transportation service or the 



in exceptional cases if 



XXVIII 


12.5 


XXVI 


9.0 


XX 


4.0 


XXVI 


9.0 


XI 


1.2 


XIX 


3.5 


XI 


1.2 


XI 


1.2 


XVII 


2.6 


VIII 


.9 


XVI 


2.3 


XIII 


1.6 


XI 


1.2 


XIII 


1.6 


IX 


1.0 


XXII 


5.0 


VIII 


.9 


III 


.1 


X 


LI 


VI 


.7 


XIII 


L6 


X 


LI 


X 


LI 


XIV 


1.8 


X 


1.1 


X 


1.1 


XVI 


2.3 


XI 


L2 


VI 


.7 


XXIII 


5.5 


XVIII 


3.0 


XIV 


1.8 


XI 


1.2 


XVII 


2.6 


XIX 


.3.5 


XV 


2.0 


XVI 


2.3 


VII 


-S 


V 


.6 


XVI 


2.3 


VII 


.8 


IX 


1.0 


XII 


1.4 


IX 


1.0 


XVIII 


3.0 


IX 


1.0 


IV 


.5 


XI 


1.2 


VI 


.7 


XV 


2.0 


VIII 


.9 


XIV 


L8 


VIII 


.9 


II 


.3 


XVIII 


3.0 


the transportation 


use of mechanical 



1760 



REPORT OF THE COMMISSIONER OF LABOR. 



CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 
OF RISK; AND PREMIUM FOR EACH RISK CLASS— Continued. 



In- 
dus- 
try 
num- 
ber. 



75 
76 
77 
78 
79 
80 

81 
82 
83 
84 
85 

86 
87 
88 

89 
90 
91 
92 
93 
94 
95 
96 

97 
98 
99 
100 
101 
102 
103 
104 

105 
106 
107 
108 

109 
110 
111 
112 
113 



114 
115 
116 
117 
118 

119 
120 
121 

122 

123 
124 
125 
126 



Industry. 



PAPER, LEATHER, GUMS, AND PKINTINQ. 



Risk 
class. 



Paper and cardboard making: 

W ood pulp 

Paper manufacturing, with machinery («) 

Paper manufacturihg, without machinery («) 

Cardboard with machinery (6) . 

Cardboard, without macbmery ( &) 

Papier-m&ch6, statuary pasteboard 

Manufactures of paper and cardboard: 

Colored paper and wall paper, with machinery 

Colored paper and wall paper, without machinery .... — ^ 

Paper, wax, oiled, parchment, sand, glazed, etc., with machinery 

Same as above, ^tho ut machinery - v ; ML LV 

Various manufeetures (boxes, envelopes, tubes, bags, etc.) with machin- 
ery ( c) 

Same as above, without machinery (c) 

Stationery and. bookbinding, with machinery 

Stationery and bookbinding, without machinery •-.--- 

Preparation of leather and manufacture of leather substitutes: 

Tanneries, with machinery 

Tanneries, without machinery -- - . — - ■ • 

Dyeing, glazing, and preparation of skins and leather, with machinery.. 

Same as above, without machinery 

Parchment 

Wax cloth 

Artificial leather 

Bark grinding mills 

Manufactures of skins, leather and substitutes: 

Footwear, with machinery 

Footwear, without machinery 

Gloves, with machinery 

Gloves, without machinery 

Saddlery , harness, and similar things, with machinery 

Saddlery , harness, and similar thmgs without machinery 

Tnmks and other manufactures of leather, with machinery 

Trunks and other manufactures of leather, without machinery 

India rubber, gutta-percha, and celluloid , manufacture of : 

Manufacture of fcidia rubber and guttarpercha, with machlnMT 

Manufactiu-e of India rubber and gutta-percha, without machinery.. . . 

Water-proof textiles 

Manufactures of celluloid 

Poly graphic arts: ,^^ ., ... 

Printing, lithographing, color printing, etc., with machinery W 

Same as above, without machinery (d) 

Engravers 

Designers and copyists 

Photographers 

CHEMICAL INDUSTRIES. 

Acids, salts, and other chemical products: 

Calcium carbide 

Distillation of coal tar - 

Cream of tartar - /- • — , ^ 

Wood distillation, exclusive of felhng and transportation of trees 

Sulphuret of carbon •- 

rhemical Droducts not specified in the tann: 

(A) Manufacture of corrosive substances (strong acids, caustic alkahes,etc). 

(b) Manufacture of various products , where corrosive substances are used . 

(c) Manufacture of various products without the use of corrosive sub- 

(d) Manufacture of pharmaceutical products 

Starch , dextrin , and albumen : , 

Starch and face powder, with macmnery 

Starch and face powder , without machmery 

Fecula ' 

Glucose, dextrin, and albumen 



Annual 

premium 

rates in 

per c«nt 

of wages. 



XV] I 
XIV 
VIII 

:xi 

IV 
XI 

XI 

in 

X 

lit 

XI 

Itt 

VIJI 

XIV 
XI 

xn 
vn 

XI 

VIII 

XI 

xvu 

VII 

III 

VI 

II 

VIT 
III 
VI 

n 

XIV 

VI 

X 

xni 

V 

II 
11 



t\ 



XV 

XVII 

IV 

XV 

XXIV 

XVIt 
XV 

XII 
IX 

XI 

vr 
vn 

xt 



2.6 
1.8 

.9 
1.2 

.5 
1.2 

1.2 
.4 

1.1 
.4 



1 



.2 
.4 
.9 
.3 



1.8 
1.2 
1.4 

.8 
1.2 

.9 
1.2 
2.6 

.8 
.4 
.7 
.3 
.8 
.4 
.7 
.3 

1.8 

.7 
1.1 
1.6 



.6 

.3 
.3 
.25 



2.0 

2.6 

.5 



1.4 
1.0 

1.2 

.7 
1.4 
1.2 



a Th«» T>remimn is increased if it is combined with the manufacture of wood pulp. 

? FvPl?isi^ KlraanuScture of wood pulp; otherwise the premiums for paper must be aijplied. 



with curcular saws. 



CHAPTER VII. WORKMEN S INSURANCE IN ITALY. 



1761 



.L 



{ 



CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 
OF RISK; AND PREMIUM FOR EACH RISK CLASS— Continued. 



In- 
dus- 
try 
niun- 
ber. 



127 
128 
129 
130 

131 
132 
133 
134 
135 
136 

137 
138 
139 

140 
141 
142 

143 
144 
145 

146 

147 
148 
149 
150 
151 
152 
153 
154 
155 
156 
157 

158 
159 
160 
161 
162 
163 
164 
165 



166 
167 
168 

169 
170 
171 



172 
173 
174 
175 



Industry. 



CHEMICAL INDUSTRIES— concluded. 

Glue and artificial fertilizers: 

Glue, with machinery (a) 

Glue, without machinery (o) 

Artificial fertilizers, with machinery (t>) , 

Artificial fertilizers, without machinery (^) i 

Dyestuffs and colors and varnishes: 

Dyestuffs and colors (animal,vegetable, and mineral), with machinery (c) 

Same as above, without machinery (c) 

Varnishes 

Blacking (exclusive of the manufacture of boxes) 

Writing ink 

Printing ink 

Explosives: 

Explosives in general (gunpowder, djmamite, guncotton, etc.) 

Pyrotechnics (manufacture and setting off of fireworks) 

Cartridges (manufacture and charging) 

Matches: 

Wax matches 

Wooden matches, including mechanical manufactiu^ of the splints. 

Wooden matches, exclusive of the mechanical manufacture ofthe splints, 
Illuminating gas and its products: 

Common gas, msinufacture and distribution , 

Acetylene, manufacture and distribution 

Coke 



Fats and their derivatives, soaps and candles: 

Fats in general (lubricants, tallow, margarine, artificial butter, etc.) with 
machinery 

Same as above, without machinery 

Stearin, with machinery , 

Stearin, without machinery '.'.'.'.'.. 

Glycerin, with distillation of fat 

Glycerin, without distillation of fat 

Soap, with machinery ] 

Soap, without machinery [[[[[[[[.[] 

Candles of wax and tallow, with machinery 

Candles of wax and tallow, without machinery ',[[] 

Stearin candles, with machinery 

Stearin candles, without machinery 

Petroleum, essences, ether, rosin, and asphalt: 

Petroleum refining 

Essences ....". 

Ethers ] " 

Perfumery 

Distillation of rosins ""]".[[] 

Sealing wax '/'[ 

Asphalt working, with machinery 

Asphalt working, without machinery 



CONSTRUCTION OF BUILDINGS, PUBUC ROADS, AND IRRIGATION WORKS. 

Laborers in various works: 

Unskilled day laborers in works not otherwise specified in the tariff, in- 
cluding transportation on rail or by animal traction and with use of 

blasting 

Same as above, exclusive of transportation and without use of blasting 
Building— Construction and repair of buildings (dwellings, factories, 
churches, towers, and accessory structures): 

(a) Work executed at a considerable height or with incomplete scaffold- 

ing or on roofs, cupolas, etc., or work mainly connected with tear- 
ing down, construction of towers, belfries, smoke-stacks, placing of 
ligntning rods, etc. . . , 

(b) Work executed altogether or mainly upon scaffolding or with freq uent 

use of blasting or with certain amount of tearing down of buildings. 

(c) Work executed only partly upon scaffolding, or in which blasting is 

used only exceptionally or with very little tearing down of buildings. 

(d) Work .n which special measures of prevention are applied, or such as 

is performed indoors on slightly elevated staging, without tearing 
down of structures or use of blasting, and general assistance in con- 
struction 

Framework and construction in wood '.'.'.'.'.' 

Pavements of wood blocks and of cement 

Construction of fireplaces inside of buildings 

Installation of gas fixtures, heaters, and water pipes 



Risk 
class. 



XI 
VII 
XII 

IX 

XIII 

IX 

XIV 

VIII 

V 

IX 

XXVI 

XXVIII 

XXVI 

vin 

XIV 

vni 

XI 
XVI 
XIV 



XIII 
XI 

XIII 
XI 

XVI 
XI 

XIII 

XI 

XI 

VII 

XIII 

VIII 

XIII 

X 

XIV 

IV 

XIII 

XI 

XV 

XI 



XIX 
XV 



XXIV 

XXI 

XVII 



XV 

XXII 

IX 

XI 

XV 



Annual 

premium 

rates in 

per cent 

of v.ages. 



1.2 

.8 

L4 

1.0 

L6 
1.0 
L8 
.« 
.6 
1.0 

9.0 

12.5 

9.0 

.9 

L8 

.9 

L2 
2.3 
L8 



1.6 
1.2 
1.6 
1.2 
2.3 
1.2 
1.6 
1.2 
1.2 

.S 
1.6 

.9 

1.6 
LI 
L8 
.5 
1.6 
1.2 
2.0 
L2 



3.5 

2.0 



6.5 
2.6 



2.0 
5.0 
LO 
1.2 
2.0 



a Increase of premium if benzine is used for extraction of the fats. 

t> Increase of premium accompanied by production of sulphuric acid. 

e Increase of premium if use is made of grinding mills, corrosive substances or digesters. 



1762 



EEPORT OF THE COMMISSIONER OF LABOR. 



CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 
OF RISK; AND PREMIUM FOR EACH RISK CLASS— Continued 



In- 
dus- 
try 
num- 
ber. 



Industry. 



176 

177 
178 
179 



180 

181 

182 

183 
184 

185 

186 

187 

188 

189 

190 

191 
192 

193 
194 
195 
196 
197 
198 
199 
200 
201 
202 

203 
204 
205 

206 

207 

208 

209 
210 
211 
212 



213 

214 
215 

216 



Risk 



CONSTRUCTION OF BtJILDINGS, PUBLIC ROADS, AND IBRIOATION WORKS— 

concluded. 

Painters, gilders, white washers, plasterers, vamishers, workers in mosaic, 
paper hangers, etc.: 

(a) On scaffolding and exterior of the buildings (also in t he inside of build- 

ings when staging is placed at great height) 

(b) On scaffolding on inside of buildings 

(c) In buildings or in shops, exclusive of all work on scaffolding 

Decorators, installation of special illumination, and of work executed on 

hand ladders or movable Kdders 

Hydraulic work and bridges: 

Subterranean aqueducts, construction and maintenance — 

(a) Including work in galleries or at a certain depth and with frequent 

use of blasting 

(b) Including work in open air or at a slight depth with rare use of 

blasting 

(c) Including work in the open air with superficial ♦'xeavations and 

without use of blasting 

Sewers, cleaning without pneumatic machines 

Sewers, cleaning with pneumatic machines 

Canal construction: 

(a) Work at great depth or subterraneous, with danger of landslides and 

with frequent use of blasting 

(b) Work at slight depth with rare use of blasting, not including trans- 

portation of the excavated material by tramways 

Canal maintenance 

Regulation of streams and water courses: 

(a) Work with use of blasting or in places subject to lan<lslides, construc- 

tion of masonry on large scale; use of dredges 

(b) Work with rare use of blasting, without danger of landslides, with 

masonry work on small scale 

Watchmen, hydraulic works 

Ports, construction and repair: 

(a) Work with compressed air or with frequent use of i>lasting 

(b) Work with moderate use of blasting and extraction tiiid with excavar 

tion of stone 

(c) Work without use of blasting and without excavation of stone 

(d) Other work presenting lower risk 

Personnel of lighthouses 

D i vers 

Pile driving 

Dredges, floating 

Dredges, on dry land 

Construction of common wells 

Construction of artesian wells, with machinery 

Construction of artesian wells, by hand labor 

Bridges, construction and maintenance: 

(a) Of iron (a) 

(b) Of wood (a) 

(c) Of masonry 

Public roads— Construction: 

(a) With tunnels and bridges of considerable magnitude, either because 

of tlie number or because of their length or elevation 

(b) With tunnels and bridges of certain magnitude, or w ith frequent use 
of blasting, or with excavation of material, mountain roads 

(c) With small tunnels and bridges, with exceptional use of blasting and 
without excavating work, level roads 

(d) Without tunnels or bridges, without blasting, with limited carting. 

Maintenance of ordinary roads, with carting 

Maintenance of ordinary roads, without carting 

Construction of tunnels 



ELECTRICITY. 

Installation of electric telephone and telegraph lines: 

Electric-power conduits or electric-light wires, installation and mainte- 
nance (&) 

Telephones, installation and maintenance, with work on roofs and poles.. . 

Telephone installation and maintenance, including stringing of wires on 
poles 

Telegraphs, installation and maintenance 



Annual 

premium 

rates in 

per cent 

of wages. 



XXI 

XV 
VIII 

XXI 



XXI 

XVII 

XI 

XXII 

XIX 

XX 

XVI 
XII 

XX 

XIV 
XVII 

XXVI 

XXIII 

XIX 

XV 

XXI 

XXIX 

XXI 

XXII 

XIX 

XXIV 

XXII 

XIX 

XX 

XIX 

XX 



XXV 

XXII 

XIX 

XVII 

XVII 

IX 

XXV 



XVI 
XXV 

XVI 
XVI 



4.5 

2.0 

.9 

4.5 

4.5 

2.6 

1.2 
5.0 
3.5 

4.0 

2.3 
1.4 

4.0 

1.8 
2.6 

9.0 

5.5 
3.5 
2.0 
4.5 
15.0 
4.5 
5.0 
3.5 
6.5 
5.0 
3.5 

4.0 
3.5 
4.0 

7.5 

5.0 

3.5 
2.6 
2.6 
1.0 
7.5 



2.3 
7.5 

2.3 
2.3 



olf use is made of compressed air the premium may be increased by one or two classes. The premium 
may also vary according to the magnitude of the construction work . 

b The premium to be increased if the work is to be performed with live wires, especially in case of a high- 
tension current. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1763 

CLASSIFICATION OP ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 
OF RISK; AND PREMIUM FOR EACH RISK CLASS-Continued. 



In- 
dus- 
try 
num- 
ber. 



217 



218 
219 
220 
221 
222 

223 

224 
225 
226 
227 
228 

229 
230 
231 
232 



233 
234 
235 
236 

237 

238 

239 

240 
241 
242 



243 

244 
245 
246 
247 
248 
249 
250 
251 

262 
253 
254 
255 
256 
257 
258 
259 
260 
261 
262 

263 

264 
265 
266 



Industry. 



Risk 
class. 



ELECTRICITY— concluded. 

Production and distribution of electric energy: 

Electric power houses. (Also including installation of fixtures.). 



BRICKYARDS, POTTERY, AND GLASS INDUSTRY. 

Brickyards and manufacture of plaster and cement: 

Brickyards, machine manufacture. . . 

Brickyards, manufacture bv hand 

Brickyards, manufacture both by hand and machinery 

Gjrpsum (plaster of paris), manufacture of. 
,, .Cement, manufacture of various materials (not indudine'extraction)" 
Majohca, porcelam, and earthenware: Awacuuu;... 

Majolica, porcelain, and earthenware. . 
Glass and mirrors: 

Glass, including production of plate glass. . 

Glass, without production of plate glass 

Glass beads 

Enamels ..."."]" 

Working up of glass "(grinding, polishing," chemical,' in whanic^^^ 
photographic engravmg) 

Glaziers, working on scaffolding 

Glaziers, working without scaffolding. .'..['. 

Mirrors, with production of plate glass. . . 

Mirrors, without production of plate glass..! 



WOODWORKING. 

Poles, sticks, umbrellas, and pipes: 

Strips of wood for cornices, with use of mechanical saws 

btrips of wood for cornices, without use of mechanical saws 

Canes, umbrellas, whips, and pipes, with use of mechanicarsaws" (a) 

o«« ^^^'."™^''^"^' whips, and pipes, without use of mechanical s&^'(a)'. 

Barrels, with machinery (a) 

Barrels, without machinery (o) 

Horn, ivory, mother-of-pearl, amber, etc.: 

Horn, ivory, mother-of-pearl, bone, tortoise shell, manufacture of. with 
machinery ' 

Same as above, without machinery! ! 

Amber, «oral, meerschaum, manufacture" of," with "machinery 

Aniber, coral, meerschaum, manufacture of, without machinerV 

Caijenters and cabinetmakers (performing work not included under aii'y" other' 

Carpenters and cabinetmakers, working with machinery (including cirou- 



Same as above (exclusive of circular saws) '. 

Carpenters and cabinetmakers, working witiioii't maciiin'e'ry 

Carpenters and cabmetmakers, working on scaffolding or stt^in'g 

Manufacture of Venetian blinds, with power saws 

Manufacture of Venetian blinds, without power saws 

Shoe trees and wooden shoes, with power saws 

Shoe trees and wooden shoes, without power saws 

Impregnation -of wood (6) 

Carving, inlaid work, wood turning, and otiier' delicate woodwork- 

Wood carvers and inlaid woodworkers 

Wood turners, using power saws 

Wood turners, without power saws ! 

Wooden ware and wooden toys, with machinerv 

Wooden ware and wooden toys, without machinery 

myons, pencil boxes, and similar office supplies . 

Manufacture of match splints, with machinerv 

Manufacture of match splints, without machinery . 

Wooden sticks 

Fans, with use of power saws !!!!!!!!!!!!!!! 

Fans, without use of power saws '. 

Sawmills and wood planing: 

Wood sawing (lumber, firewood, hard-wood flooring, staves) with use of 
power saws, including circular saws "^ "* 

Same as above, with use of power saws but exclusive of circular saws' 

tsame as above, with use of handsaws 

Planing 



XVII 



XVI 
IX 

XIV 
VI 
IX 



xrv 

IX 
VI 

VII 

IX 
XVI 

VII 
XIV 

VII 



xvni 

XIII 

XVII 

IX 

XVIII 
X 



XIV 

VIII 

V 

III 



XXI 

XVIII 

XIII 

XXI 

XX 

VI 

xvni 

X 

XIII 

IX 

XVI 

XI 

XV 

XI 

XII 

XV 

IX 

XIV 

XV 

vin 



XXIII 

XIX 

XV 

XVIII 



Annual 

premium 

rates in 

percent 

cf wages. 



2.6 



2.3 
1.0 
1.8 
.7 
1.0 

.6 

L8 

1.0 

.7 

.8 

1.0 
2.3 

.8 
1.8 

.8 



3.0 
1.6 
2.6 
1.0 

3.0 
1.1 



1.8 
.9 
.6 
.4 



4.5 
3.0 
1.6 
4.5 
4.0 
.7 
3.0 
1.1 
1.6 



a Premium to be increased if use is made of circular saws. 
thelys'teK'i^rT^lt^on"''''^'^"^ according to the danger presented by the substances employed 



1.0 

1.8 

2.0 

.9 



5.5 
3.5 
2.0 
3.0 

and 



1764 



REPORT OF THE COMMISSIONER OF LABOR. 



CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 
OF RISK; AND PREMIUM FOR EACH RISK (X ASS— Continued. 




267 

268 
269 
270 
271 
272 
273 



274 

275 
276 

277 
278 
279 
280 
281 

282 
283 
284 

285 

286 
287 
288 
289 



290 
291 
292 



293 
294 
295 

296 
297 
298 
299 
300 
301 
302 
303 

304 
305 
306 
307 
308 
309 
310 
311 
312 
313 
314 



■WOODWORKING— concluded . 

Cork, wicker, and brushes: 

Cork working 

Manufactures of wicker .."V.\[ .[[..]]]] 

Manufactures of rush products 

Brushes, with woodworking '.'.'.'.'.'.'.'. 

Brushes, without woodworking '.".!!".!!!'!! 

Whisk brooms and paint brushes, with use of power. V. . 
Whisk brooms and paint brushes, without use of power. 



MACHINEEY AND MECHANICAL WORK. 

Appliances for lighting, heathig, electricity, and exact instruments In general: 

Appliances for lighting, heating, hydraulic work, manufacture, and 
installation (a) 

Appliances enumerated above, manufacture but without Installation («•)! 

Scientific instruments and appliances (chemical, pharmat-f-utical, surgi- 
cal, mathematical, physical, and optical), with machinery (c) 

Same as above, without machinery ( c) 

Scales, weights, and measiu-es, with machinery ( c) ] 

Scales, weights, and measures, without machinery ( c) 

Ordinary timepieces 

Tower clocks, manufacture and installation (^j '.'. 

Firearms: 

Ordinary firearms, with machinery (<) 

Ordinary firearms, without machinery («) ! 

Artillery 

Shipyards: 

(a) Large establishments for construction of wooden and Iron ships, 
includmg machine shops .. 

b) Construction of wooden ships and boats, with power saws........ 

c) Same as above, without power saws 

^d) Construction of barges, boats, etc., with power saws !!"!!!!!"' 

e) As above, without power saws (the repair work, calking, etc., shall be 

assimilated, accordhig to its importance and the mode and place of 
execution, to one of the preceding groups) 

Breaking up of wooden ships '. 

Breaking up of iron ships .."!"!!!!!!]!!!!!!!!! 

Dry docks, management (not including the repair of ships oir any work on 

boardship) 

Carts and carriages: 

Ordinary carts and carriages, with use of power saws 

Ordinarv carts and carriages, without use of power saws 

Railroad and tramway cars 

Musical instruments and accessories: 

Musical instruments not otherwise specified In the tariff, with machinery 

Same as above, without machinery 

Organs, pianos, harmoniums, with use of power saws !!!!!!!!!!!!! 

Organs, pianos, harmoniums, without use of power saws 

Harmonicas, with machinery ] ] ] ' 

Harmonicas, without machinery "....[[""[. .[[[[V. 

Musical strings, catgut '.'.'.'.'.'....,'.'.'.'. 

Musical strings, metal ""!!"!!!!!"!!!!!!!.!!" 

Machines and machine shops in general: 

Manufacture of boilers for industrial uses 

Demolition of boilers for industrial uses 

Agrlcultvu-al machinery 

Construction and repair of grinding milis, with use of pow'er saws 

Construction and repair of grinding mills, without use of power saws 

Automobiles (increase of premium If testing is included) 

Bicycles " 

Sewing machines and typewriters I"" """ ..["[[[" 

Pumps (with Increase of premium if work In wood Is Included) '.'. 

Weaving looms and other Implements for weaving 

Grinders and assemblers of machinery 



VIII 
V 

vn 

XVII 

vn 

XVIl 
Vll 



XII 
IX 

XI 

VII 

XI 

VII 

V 

X 

XV 

XI 

XVI 11 



XXV 
XXI 
XIX 

XVIl 



XIII 
XXIX 
XXXI 

XV 

XVI 

XIII 
XVI II 

XII 

vni 

XVI 

XI 

XI 

V 

IV 

VII 

XXI 
XXIII 
XVI 
XIX 
XVI 
XVI 
XIV 
XI 
XIV 
XIII 
XIX 



Annual 
premium 

rates In 
percent 
of wages. 



0.9 
.6 
.8 

2.6 
.8 

2.6 
.8 



a If the work of Installation is done upon the outside of buildings or on scaffoldings or if use is 
power or of foundry work the premium must be increased. 

6 If use is made of power or of foundry work the premium must be increased 
c Premiums are increased If use Is made of power saws. 

** The premium to be increased If it is combined with work outside »if the towers, 
e With increase of premium If it is combined with the charging of cartridges 



1.4 
1.0 

1.2 
.8 

1.2 
.8 
.6 

1.1 

2.0 
1.2 
3.0 



7.5 
4.5 
3.5 
2.6 



1.6 
15.0 
25.0 

2.0 

2.3 
1.6 
3.0 

1.4 

.9 

2.3 

1.2 

1.2 

.6 

.5 

.8 

4.5 
5.5 
2.3 
3.5 
2.3 
2.3 
L8 
1.2 
1.8 
1.6 
3.5 

made of 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1765 

CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE 
OR RISK; AND PREMIUM FOR EACH RISK CLASS-Continuei. 




I 



315 
316 
317 
318 
319 



320 
321 
322 
323 
324 
325 
326 
327 



328 
329 
330 
331 
332 
333 
334 
335 
336 
337 
338 

339 
340 
341 
342 

343 



344 

345 

346 

347 

348 

349 

350 

351 

352 

353 

354 

355 

356 

357 

358 

359 

360 

361 

362 

363 

364 

365 

366 

367 

368 

369 

370 

371 

372 



MACHINERY AND MECHANICAL WORK— Concluded. 

Machine shops: 

(a) For lai^e construction 

(^) For small construction, with machineiy (o) 

(c) For small construction, without machinery (a) 

(d) For repair, with machinery (o) 

(e) For repair, without machinery (o) 



METALS. 



XVIII 

XVI 

XIII 

XIII 

X 



^°^mn^oi^®l&i^"^*^*^' ?°i«ltlng, and early manufacturing processes): 
Iron and steel foundries, large establishments "^;»«»cay. 

iron and steel foundries, small establishments, With machine!^ 

BlSSth^hi^^ ' ^^^ estabUshments, without machinery ! ! '. '. 

Forging hammers, large" establishments! '. 

Forgmg hammers, small establishments 

Iron and steel rolling 

XT -i^°° ^^ ^^^^ ^^^® drawing, hot. .'.'."." I yt v 

^SSsT'' ^''''^'^^^ ""^ ^""^^ ^^ ^^^^ (smeitog aiid early in^ufacturlng' 

Smelting of various metals, large establishments 

s^« In! ^J various metals, smaU establishments, with m^hi^e^; 

Smeltmg of various metals, small establishments, without machmerv 

Rollme of various metals, large establishments. . . macnmery. . . 

Wire drawing, various metals, hot (exclusive of precious' metals) 

Wiredrawing of precious metals... "o^xcuua; 

Manufacture of tin plate 

Gold beaters, with machinery. 

Gold beaters, without machinery 

Gold and silver plate 

Metal |;rindmg ^ [][ 

Goldsmithing, silversmithing, jewelry: 

Sllversmithing, with machinery 

Silversmithing, without machinery. . 

Go dsmithing and Jewelry, with machinery 

^oldsmithing and jewelry, without machinery 

^ni?«v ^ fS? utensils, metal furniture and varioiis" micl^i 

Blacksmiths and locksmiths, working in iron and steel 



XXII 
XVIII 
XIII 
XIX 
XIX 
XVI 
XIX 



XV 

XIII 

X 

XIII 

XVIII 

VI 

XV 

X 

III 

VIII 
XIII 



not otherwise 



une as above, without machlnerv (6) .. 



Same 



Same as above, working on scaffolding or staging? V)" 

Knives, scythes, cutting arms, etc., with machlnerV ' 

Knives, scythes, cutting arms, etc., without machinery 

Files, rasps, and saws "*"ctor 

Metallic springs for vehicles or large maci^ery 

Metallic springs of small size.. 

Screws 

Horseshoers !!!!!"'.'"!! 

Iron furniture and safes', with machinery 

iron furniture and safes, without machinery 

Tff^mJjSf ' P^""^^'^' and zinc workers, in the shop," With' maishlnei^" ' ' 
w^T i^^' P'"^bers aiid zmc workers. In the shopVwlthout machSi^" 
Workmg on roofs, staging, or scaffolding (6) macamery. 
Brass working * 

Coppersmith manufacturing,' objects of iidm'e "use... 

Metallic pens 

Metal stamping and pressing",' wltii inacidnery .* 

Metal stampmg and pressing, without machinery. 

Cartridges, exdusive of charging 

Metal novelties and jewelry, with machinery 

Metal novelties and jeweh^, without machinery 

Needles and pins 

Screws and bolts 

Nails, with machinery 

Nails, without machinery. ..." 

Iron points 

Wire metal rope, and cables ....'. 

Metal netting, including wli« drawing 



X 

III 

rv 
III 



ou[tsTdl t^h^ machi^eYh^.*'"''^^** ^°' ^^""^ °' '°'^" construction ustag factory 

mL^aL°£i®**-^°'"^' t^^t ^S' 5"^^ as is performed partly In the shoo and mrtlv 
Suo^^FS"^ proportionate to the Importance of o^ratlSm^o^eS mlS^ 



XIV 
VIII 
XIX 
XIII 

IX 
XIII 
XVI 
XIII 

XI 
XIX 
XIV 

IX 

XVI 

XII 

XXIV 

XII 

XIV 

X 

XII 

VI 
X 

XI 
VII 

X 

XIV 

XII 

X 

XII 

XII 

XVI 



Annual 

premium 

rates in 

percent 

of wages. 



3.0 
2.3 
L6 
L6 
LI 



5.0 
3.0 
L6 
3.5 
3.5 
2.3 
3.5 
3.5 



2.0 

L6 
1. 1 
1.6 

ao 

.7 

2.0 

LI 

.4 

.9 

L6 

LI 
.4 
.5 
.4 



L8 
.9 
3.5 
L6 
LO 
L6 
2.3 
1.6 
L2 
3.5 
1.8 
1.0 
2.3 
1.4 
6.5 
1.4 
L8 
LI 
L4 
.7 
LI 
L2 
.8 
LI 
L8 
1.4 
LI 
L4 
L4 
2.S 



work and for repairs done 



on scaffolding, an Inter- 
under the two different oon- 



f 



1766 BEPORT OF THE COMMISSIONER OF LABOR. 

CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS BY DEGREE 
CLASSIFICAT^ONJ^*^ Ji.^^^ PREMIUM FOR EACH RISK CLASS-Contmued. ^ 

Annual 

premium 

rates in 

per c«nt 

of wa^es. 




373 
374 
375 
376 

377 
378 
379 
380 
381 



METALS — concluded. 



implements and utensils, metal fumitare and various articles -Concluded. 
Metal netting, exclusive of wire drawing 

Type for printing 

Metal turners 

Metal chases 

^'"^ aSingTnd'lSl^^inetals, with machinery («).-. 

PHnH SI and bo ishini metals, without machmery (a) 

IwfrpfatTnl'^oW&ng, nickel platin^^ 



Enameling metals 
Electric plating 



MINERALS. (6) 



382 

383 
384 

385 

386 
387 
388 
389 
390 

391 

392 
393 
394 
395 
396 
397 
398 
399 



400 

401 

402 

403 

404 

405 

406 

407 

408 

409 

410 

411 

412 

413 

414 

415 



•'%g|totcS'T;^v'S,'sSr-cl coloring e^rtM 

Mineral fuels: . 

Hard and soft coal mmes 

Turf pits 

Metals* 

Metal mining, including smelting 

Kle?gi?ii?e7and porphyry, with inclmed plane 

Marble, granite, andjwrphyry, 



without inclined plane. . 



Lava, pozzolana, and tufa stone quames. 



^"^^S^u'Shur mining, including working up of the mineral. 
Various minerals: 



Graphite munng 

Mica and barytes and magnesite quames 

Petroleum mining -- 

Rock salt mining 

Salt works 

Ice cutting v - : ■ • •," 'i\:i«».' >V\ 

Working up of the products of mining, (c) 

^■"i^SfrfiCiffi^orSlSS'™^^^^^^^^ : 

Gravel, machine crushing ;■■•; __ 

Gravel, hand crushing 

Manufacture of emery -....- 

Crushing of stones and earths .. . 



XI 

IX 

XVI 

IV 

XIV 

VIII 

IX 

Xll 

V 



XVIII 

XIX 
XI 

XX 

XXIII 

XIX 

XXIV 

XXII 
XXIV 

XXIV 

xxn 

XXII 

XVItl 

XX 

XVI II 

XIX 

IX 

XIX 



L2 

1.0 

2.3 

.5 

1.8 

.9 

1.0 

1.4 

.6 



3.0 

3.5 
L2 

4.0 

5.5 
3.5 

6.5 
5.0 
6.5 

6.5 



3.0 
3.5 
1.0 
3.5 



r^lere working upon scaffolding or staging 

pSpS: not worki^on scaffolding or stagmj.,-^.^..^- -_..;. 

and marble-c 

and marble-c 

ndmechanica 
Miiistones and grindstones. 



i?S?ISS SSd martr.E<=7t(rr;;workrni-on"^"*oldta^ <" "»«'°«- " ' 
-krnictnnnc and erindstones 



I 



XXI 


4.5 


XVII 


2.6 


XI 


1.2 


XVI 


2.3 


XIX 


3.5 


XXIII 


5.5 


XII 


1.4 


XVII 


2.6 


XX 


4.0 


XVIII 


3.0 


XV HI 


3.0 


XIV 


1.8 


XVII 


2.6 


XVII 


2.6 


XII 


1.4 


XIII 


L6 



Slate and lava working 

Precious stone working 

a The premium to be increased i^ «^,jJ,f^thfslXSb^^^^^^^^ may be increased 

6 For t^e classescomprised under the rst {« ^f si^^^suDgroups, j^'aterial and danger that several 

if the condition of work was unfavorable ^^omipnt use of exprosives: third, excavations not contmued 
persons might be crushed at once; f^S^^^^i^Sh ?arS size Sat lepth or ai^tivity of the mines or quar- 
Swjording to the regulations of V^^ ^^a^;tSor SofSffirnl t6ols; sixth, product ion of deleterious 
ties; fifth, dangerous methods oftransiwrtation^^ ^ ^ material (thecr.ishing of gravel, 

or ekplosive gases. The premium mayj^ reduced ii me wor^b^ ^^^ ^.^ the mines or 

roasting and pulverizing ores, saw^rf^fd^ Jen SSuS different classes. Still greater reduc- 

quarries, unless these processes ^^ve already been incnKieum^ ^^^ premium may also be 

tion may be granted f the work is I^rfonned ^^^^^^f ^^^Xalught that the entire danger of falling 

reduced when the extraction of the ore takes p ace ax ^"^u a ^ i^echanical traction 
"^^Ttll^uS^Xe Se^{^rStLS,'^&£ aSrwi^ Of minerals, when executed in independent 
establishments. 



CHAPTER VII.— WOEKMEN'S INSURANCE IN ITALY. 1767 

CLASSIFICATION OF ENTERPRTqifQ TMT^TTomT,,™^ 




416 
417 
418 
419 

420 
421 

422 
423 
424 
425 

426 

427 
428 

429 

430 
431 
432 
433 

434 
435 
436 
437 
438 



Wool and cotton cardine 

Artificial wool. . 

*^£n\X°h^1,7'"'«''«°'*«»-(P'e^"in"iobe^d 

Silk spinning 

Silk waste working 

Yam twisting. With maciiinei^^ 

Yam twistmg, without machinery" 

'''^SS.lf^^.^l^^!S'^^,^''-^'-<iii-^-''^ir^splnr^: 

Hand weaving (6) 

Preparation of yam and "tissues" 

Dyeing of yam or cloth wiVh'^o^i; ••■:"• 



Dyeing of yam or"cloth; "With'iii^hinei^" 
Ti^nr- °^ ""^ y^?^ °^ ^'oth withoXnServ 



439 
440 
441 
442 
443 

444 

445 

446 



447 
448 
449 
450 

451 
452 

453 
454 
455 
456 

457 



Manuf^tui^ oThempJut^ I^d flax'' ''""^ ^'"""^^ "^"^y- 

Cotton manufactures ^ ii»A 

MKt^StSlr^^-^'^^-^-»'^-eaVix;g;:::::::^ 

MWacturesoflaxitgoods:iace;ribWns,"passexn^ 



458 

459 
460 
461 
46? 
463 



TBANSPOETAHON. 

Porters, elevators, cranes, etc.: 

Pc'r^S^fia^olr^^-'^'P^-O'^^ytog 

Porters in Other places (c) 

Street messengers 

„ XtlSit:'!^!'- "'"<''»^'«'^«".-d other mechiiic.iWppiian^ 
Railroads: ..f 

Personnel of the repair shops 

Tram service ^ 

Common laborers '"'[ ." 

Tr«^f^"^®<*"s employees... 

iramways: 

Horse cars, the entire personnel 

&^;J^„-??,S--«'-""--:::::-::::::::::-:- 



VI 

VII 

XI 

VI 

II 

VII 

VIII 

X 

III 

IX 
IV 

V 

II 



IX 

in 

IV 

VII 

III 

IX 
X 

VII 
IV 

IV 



-s^S'^TiZ'ii^-ssi^r^.^^^in^ 



XXIV 

XX 

XVII 

xm 

XVUI 

XVI 

XII 

XXI 

XV 

XI 

XIX 

XVII 

XVII 

XV 

XVI 

XV 

XVII 

XVI 



.animals, eteX ^""'^'^"^^'°« "material, coal, lumber, furniture, boxes 
'^%i^^'''^^--^oisinsii^eiiid'^^^ XXIII 

&p-4S^-:Stt%^r.^. 

Automobiles, chauffeur 

.h?.l?!????ses mentioned " 



XVIII 

XXI 

XX 

XVI 

IX 

XXVI 



Annual 

premium 

rates in 

percent 

of wages. 



a7 

.8 
LS 

.7 
.3 

.8 
9 
1 

.4 
1.0 

.5 



1 






1.0 
.4 
.5 
.8 
.4 

1.0 

1.1 

.8 

.8 

.5 



6.5 
4.0 
2.6 
1.6 

3.0 
2.3 
1.4 

4.5 

2.0 
1.2 
3.5 
2.6 
2.6 
2.5 

2.3 
2.0 
2.0 
2.3 



5.5 

3.0 
4.5 
10 
2L3 

1.0 
9.0 






67725°— voi, 2-11- 



-18 



small bulk not otetog i^.^^f a"^; 



1768 



REPORT OF THE COMMISSIONER OF LABOR. 



CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS BY DEGREE 
OF RISK; AND PREMIUM FOR EACH RISK CLASS-Continued. 



In- 
dus- 
try 
num- 
ber. 



464 
465 
466 
467 

468 
469 
470 
471 



472 
473 
474 
4r5 
476 
477 
478 
479 
480 

481 
482 
483 

484 
485 
486 

487 
488 
489 

490 
491 
402 
403 



494 
495 
496 
497 

498 
499 
500 
501 
502 
503 
504 
505 
506 

507 
508 
509 
510 
511 
512 
513 
514 
515 
516 



Industry. 



TRANSPCiRTATiON— concluded . 



Transportation in carts, carriages, etc., and telephones— Concluded. 

liana wagons on rails 

Forest roads !!!!!!!!!!! 

Inclined planes 

Telephones iiiii!!"!! !!!."!!".'!!.'! 

Transportation on rivers and lakes: 

Sailing vessels on lakes, rivers, and lagoons, including the entire crew. 

Steam vessels as above 

Barges and fishing vessels on lakes, rivers, and iagoonsV.'.'.' 

Rafts, and floats on lakes , rivers, and lagoons. . . 
Deep sea transportation, (a) 

CLOTHING. 

Clothing, furs, lingerie, corsets, etc.: 

Dealers, with machinery 

Dealers, without machinery 

Lingerie, with machinery '.'.'.'.'.'.'.'..'.'."'. 

Lingerie, without machinery '.'.'.'.'.'.'.'.". 

Corsets, with machinery 

Corsets, without machinery ".".!!."!!!!! 

Buttons of cloth or thread, with machinery! 

Buttons of cloth or thread, without machinery. 

Mattresses 

Hats: 

Felt hats, with machinery 

Felt hats, without machinery ""[["]"""[ 

Straw hats, with machinery '.'.'.'..'.'.'.'.'.'.'.'.. 

Straw hats, without machinery 

Beretta, with machinery !!!!!!!!!"!'!"!!!! 

Beretta, without machinery 

Millinery, plumes, and artificial flowers: * 

Millinery 

Artificial flowers .!!!!!!!!!!!!! 

Plumes 

Washing, ironing, and cleaning: 

Laundries, with machinery 

Laundries, without machinery 

Cleaning 

Ironing '.'.'.'.'.'.'.'.'.'.'.'.'.'. 



MISCELLAKEOUS. 

Retail trade: 

Wine, selling at retail (exclusive of manufacture or transportation) 

Drug stores 

Butcher shops "..""""[ 

Retail selling, of classes not otherwise mentioned in the tariff 

Guards, guides, and firemen: 

Forest and field watchmen 

Night watchmen '.'.'.'.'.'.'.'. 

City watchmen \ ..[""["... \[ 

Watchmen, in customs service in cities !!!!!!!!!!!!!!!!!!] 

Watchmen,incustomsserviceout of town 

Guards of tax officers ] . . ] '. 

Hunting guards [["["...[[[[[ 

Alpine guards and porters 

Regular firemen WW" V. .["""' ' 

Personnel of service in general: (*) 

Hotels, the night service 

Domestic servants, male ] ] ] 

Sea bathing establishments 

Other bath establishments !!...'!!!!!.! 

Hospitals , the entire personnel "-WWIW.] ..[][[[][[ ' 

Hospitals for the insane, the night personnel ""!"!!!!!!!!" 

Theaters, the night personnel, including machinists 

Domestic servants, female, and porters 

Carriers 

Employees in general WWV. ..][[[[[[[ 



Risk 

class. 



xxn 

XX 

XXVII 
XX 

XIX 

XVII 

XVIII 

xvni 



VI 

I 

VI 

I 

IV 

I 

vm 

I 

VI 
IV 

II 

IV 

II 

IV 

I 

I 

II 
ui 



Annual 
premium 

rates In 
per cent 
of wages. 



5.0 

4.0 

10.5 

4.0 

3.5 
2.6 
3.0 
3.0 



.7 

.25 

.7 

.25 

.5 

.25 

.9 

.25 

.7 

.5 
.3 
.5 
.3 
.5 
.25 

.25 

.3 

.4 



XII 


L4 


IV 


.5 


VII 


.8 


IV 


.6 


V 


.6 


VIII 


.9 


XII 


1.4 


n 


.3 


XI 


1.2 


XI 


1.2 


XIV 


1.8 


rx 


LO 


XX 


4.0 


XV 


2.0 


XIV 


L8 


XIX 


3.5 


xrv 


1.8 


XI 


1.2 


VI 


.7 


XII 


1.4 


VI 


.7 


XI 


1.2 


XVII 


2.6 


XIV 


L8 


vni 


.0 


VIII 


.9 


I 


.25 



a For deep sea transportation a special tariff applies which has not yet been approved 
b Tiie personnel of service included here must not be occupied ai anything but hand work: if persons 
handling machmery (elevators, all kinds of motors, steam heating plants, etc.) are included, the premium 
must be increased correspondingly. or , / ,* «4/.o*ixai*iu 



CHAPTER VII.-W0BKMEN'S INSUEANCE IN ITALY. 1769 

CLASSIFICATION OF ENTERPRTQFq TxrT^TTom^.^ 




517 

518 

519 

520 

521 

522 

523 

524 

525 

526 

627 

528 



MISCELLANEOUS— concluded 
GSv?d&r^"^^^« '^^ ^°^^S on°£dde?8 .'' [ 1 [ 

HiStera.^^^"^' the'entire'^^^inei::: ::::;:;::::• 



Boiler scraping 
Enginee: 



Kt 'b£S^ dtoln/eciogesiabiiVhnienU: ! ! ! ! ! ; : ! I ! ! ! : ! ; : ; ; ; 



529 
530 
531 



Appendix. (6) 

navigation: «= m w ou anuary 31 , 1 904, concerning deep-sea 

P^T °' ^^^^ and short-distance tugs 



Annual 

premium 

rates In 

percent 

of wages. 



1.0 
1.2 
1.0 
4.5 
2.6 
6.5 
3.5 
.5 
1.1 
2.0 
2.0 
1.0 



XVII 
XIII 

xxrv 



isg^sSfo'tSli^^'Sh^n^M^^^^ 
^ From BoUettino di NotlJffs'u'lVr^^^d^to^'e^Jf^^^^^^^^^^ f^nsured ^ "b^l^^^? ^oU>rs 



2.6 

1.6 
6.5 



orint 



ADMINISTKATION. 

savings bank, Zlt^Zl^LTl''"''-'' '''''''"^ ^ *»»« ^ilan 
entered into he agrefment Tht ''^^^"^ institutions which have 
bank acts also asThrrecutivrcor''*'i^'/r'^"^" ''^ *he Milan 
institution. It must mee/" eSHnd'of *'' T""^*^ '°^"^-- 
administers all the current Tust^ek j fl '^ necessary, and 

supervising the work of the execSorl ItTr^!.^^^^^^ 
premium changes DreDar«« th^ . ^^""^^ *^® necessarv 

yea. the techLll'^sSments cTd^u tsthrT.'^'^' ^^^^>' «- 
employers and workmen for in. ,r,n. 1 ? agitation among the 

of accident preventS^ etc ^Mh« .t 7'''^"°' ^'"'"^^ "^^t^ods 
the agreements act L local afnts „f" ^- '°'" ^^'^ ^*^« '^^-<i 
these local officers are unSer IhTlf . T"*""" institution, and 
while the work of thk comr^i!,?*'*''^ i^** ^^^''^^'^^ committee, 
national insurance iSitutrn^f ! '^^ P°"'*^ P^^^^ ^^ the 

constituted as follows Se^^esfdeTv^^^^ ^L * ^"P«""^ ««"-<>" 
hers of the executive 00^^*^^' ^"^J'^^^'^^'^t, and five mem- 
of the other nine banks ^f^' *°^. ''"^ representative from each 
oftener if necessary It al^ '°T' """^^ ''''' semiamxually, ^1 
approves the ann/al budtTand ieTr"" *°^ -den.nity';ates, 
tl^e action of executiveoffi^ct,tl;tdraT^ter^^^^ and revised 



1770 



REPORT OF THE COMMISSIONER OF LABOR. 



The law of December 23, 1886, provided a method for introducing 
changes in the conditions of the agreement. According to the law 
the superior council may recommend to the Government such changes 
in the conditions as experience shall prove desirable, and these 
recommendations may be approved by royal decrees (administrative 
acts). 

STATISTICS OF OPERATIONS. 

A record of the operation of the National Accident Insurance 
Institution for the entire period is quoted in the following table, 
showing the total number of policies issued and the number of persons 
insured each year from the beginning of the organization of the 
institution. This table shows the growth of the transactions, though 
not altogether accurately. The number of policies issued and the 
number of persons insured is excessive for the years 1898 and 1904. 
During 1898 the first compensation act went into effect, and during 
1904 the amendments of 1903, and in both years many poUcies were 
written twice, first for a short time under the old conditions, and then 
again to comply with the new requirements, wliich explains the very 
large number of policies issued during these two years. 

NUMBER AND KIND OF POLICIES ISSUED AND NUMBER OF PERSONS INSURED 
EACH YEAR BY THE NATIONAL ACCIDENT INSURANCE INSTITUTION. 1884 TO 1907. 

[Source: Bollettino di Notiele sul Credito e sulla Previdensa, 1902 to 1908. Atti della Cassa Nazionale 
d'Assicurazione per gl' Infortuni degli Operai sul Lavoro, 1908 and 1909.] 





Indi- 
vidual 
insur- 
ance: 
Persons 
insured. 


Collective insurance. 








Simple. 


Combined. 


1 oiai. 


Year. 


Policies 
issued. 


Persons 
insured. 


Average 
niraiber 
insured 

per 
policy. 


Policies 
issued. 


Persons 
insured 


Average 
number 
insured 

per 
policy. 


Policies 
issued. 


Persons 
insured. 


1884.... 

1885 

1886.... 
1887. . . . 
1888.... 
1889...- 
1890.... 
1891..-- 
1892.... 
1893. . . . 
1894. . . . 
1895.... 
1896.... 
1897.... 
1898 (o). 

1899 

1900. . . . 
1901.... 
1902. - . . 
1903.... 
1904 (o). 


42 
304 
532 
1,058 
1,192 
1,292 
2,056 
1,904 
1,947 
1,922 
2,105 
2,472 
2,540 
2,777 
2,710 
2,274 
2,452 
2,669 
3,029 
3,082 
3,379 
3,409 
3,460 
3,811 


6 

28 

76 

02 

75 

82 

113 

101 

100 

105 

141 

187 

190 

250 

337 

201 

296 

443 

378 

463 

(6) 

(ft) 


306 

2,382 

6,687 

4,103 

4,018 

4,191 

4,977 

5,516 

6,047 

11,762 

11,368 

12,282 

16,803 

15,318 

20,287 

6,665 

8,169 

9,917 

10,305 

10,718 

C) 

C) 


51.0 
85.1 
88.0 
66.2 
53.6 
5L1 
44.0 
54.6 
60.5 
112.0 
80.6 
65.7 
88.4 
6L3 
60.2 
33.2 
27.6 
22.4 
27.3 
23.2 


2 
53 

228 

259 

359 

538 

749 

905 

997 

1,142 

1,247 

1,464 

1,670 

1,843 

3,976 

3,823 

5,493 

8,880 

14,607 

17,927 

c 39, 505 

e 27, 136 

c 32, 027 

c 33, 151 


96 

10,521 

25,487 

34,370 

48,202 

78,304 

93,797 

106,503 

111,122 

117,052 

121,536 

138,879 

148, 5H9 

154, 774 

272, 825 

107,326 

207,464 

298,383 

392,027 

444,739 

c972,8t)8 

c537,+U 

c 642, 154 

c 644, 870 


47.6 

198.5 

111.8 

132.7 

134.3 

145.6 

125.2 

117.7 

111.5 

102.5 

97.5 

94.9 

89.0 

84.0 

68.6 

28.1 

37.8 

33.6 

26.8 

24.8 

C24.6 

C19.8 

«20.1 

C19.5 


50 

386 

836 

1,379 

1,626 

1,912 

2,918 

2,910 

3.044 

3,169 

3,493 

4,123 

4,400 

4,870 

7,023 

6,298 

8,241 

11,992 

18,014 

21,472 

42,884 

30,545 

35,487 

36,962 


443 

13.207 

32.706 

39,531 

53,412 

83.787 

100.830 

113.923 

119.116 

130, 736 

134.999 

153,633 

167,912 

172,869 

295,822 

116,264 

218,085 

310,969 

406,361 

458,539 

976,247 


1905 




540.850 


1906 





645 614 


1907 




648,681 









CHAPTEE VII.— workmen's INSUBANCE IN ITALY. 1771 

The actual increase in tlie number of wage-workers inonr^H ;» 
shown in the second column of the followmg tluJ^gZZ^Je 
number of persons msured throughout the vear tL HJfflf ^ 
between the number of persons infured during t"e yit t shown' 
on page 1770, and the average number insured throu^ut the vl^ 

STsLrt W*''' tS-'^^^ r^'t °^ P^-^-^ we^etsutV o" 
r^^^ !^ . . ^ ^'S**^* number was reached in 1903 aftpr 

which the formation of the Sulphur Mine Employed Sal^ 
Wance Association caused a considerable redu^ctbn in S?ave7 
age number of persons insured throughout the year in SeNatLL" 
Accident Insurance Institution. J «" m me iNational 

This table shows the increase in the number of accidents The 
column giving the amiual number of accidents per 1 oSper^n^ 
msured shows a very rapid increase in the frequLcy of accW^^ 
Wluch has caused a very strong outciy against th2 frauHrpfa^JJ 
and malmgermg, discussed more fuUy in a subsequent section 

sipn(bythedecreeofJuir.l'lV^ 

of over five days, whUe previously benefits were paid oTfor LfuriE 

hshed by the accident statistics of all countries, a vei^y large nrlSfon 
of accidents caused disability of less than one montL"^^ ^ *'*"" 
eigS;::^ (Tssst 7^^ ^^^ ^^^Y^^-^^ fainy uniform for about 
eL^i^rZ^ SCra^lti'ls^pSyTSt ^/^^ 

taken place m^ai^Se ^LZ'Z:^-^^. LT^^'T 
for the death ratio has not increased, but rather dec^^l a ' 

panson of the totals for the three nerioT t hi ! ^f 'f'^d. A com- 
ment of the law asss tni«08 wu ' . """^ ^^^^''^ ^^^ «n*c«- 
(1890 tl TonQt / ! ^ ^^' ^^^ P*"''*^ of ^^ first law of 1898 
U899 to 1903), and of the amended law (1904 t.^ 1onA^ u • 

more forcibly the rapid increase in tie lidLt rate. '^' ''"^ «"* 



a The large number of policies issued in this year is explained by the fact that policies were issued 
twice during the year, first before the new regulations went into effect, and then for the rest of the year. 
b Included in combined collective insurance, 
e Including simple collective insurance. 



1772 



REPOBT OF THE COMMISSIONER OF LABOR. 



NUMBER AND PER CENT OF ACCIDENTS TO PERSONS INSURED IN THE NATIONAL 
ACCIDENT INSURANCE INSTITUTION AND ACCIDENT RATES, BY RESULT OF INJURY, 

1884 TO 1906. 

[Source: Atti dellaCassaNazionaled'Assicurazionepergl' Infortuni degli OperaisulLavoro. Verb^della 
Seduta del 22 dicembre 1908. On September 30, 1908, there remained unsettled 3 cases of 1900; 1 of 
1901 ; 7 of 1902; 56 of 1903; 127 of 1904; 90 of 1905, and 738 of 1906. Thixw numbers are not included m the 
figures reported for the respective years.] 



Year. 



Average 
number 

of 
persons 
insured 
through- 
out the 
year. 



1884. 
1885. 
1886. 
1887. 
1888. 
1889. 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 



1888 to 1898. . 
1899 to 1903... 
1904 to 1906... 



67 

6,556 

24,440 

36,992 

58,023 

77,876 

94,507 

103,238 

109,253 

118,133 

125,119 

138,192 

146,696 

158,214 

160,772 

178,439 

202,355 

245,501 

340,256 

421,363 

370, 198 

373,570 

406,183 

1,290,023 
1,387,914 
1,149,951 



Number of accidents 
resulting in— 



Death. 



2 
91 

47 

62 

65 

101 

84 

89 

96 

82 

113 

99 

174 

145 

158 

159 

298 

339 

399 

353 

307 

334 

1,110 

1,353 

994 



Per- 
ma- 
nent 
disa- 
bility. 



19 

67 

104 

108 

133 

153 

203 

211 

247 

299 

336 

366 

431 

390 

406 

646 

956 

1,554 

2,372 

2,037 

2,005 

2,844 

2,877 
5,934 
6,886 



Tem- 
po- 
rary 
disa- 
bility. 



Total 
num- 
ber of 
acci- 
dents. 



Numberof accidents 
per 1,000 insured 
resulting in— 



Death. 



49 

538 

1,374 

3,393 

4,695 

5,249 

5,636 

5,720 

6,977 

7,610 

8,338 

9,804 

11,999 

12,019 

10,908 

14,920 

21,420 

31,561 

42,489 

50,579 

51,914 

62,064 

81,440 
121,298 
164,557 



70 

696 

1,525 

3,563 

4,893 

5,503 

5,923 

6,020 

7,320 

7,991 

8,787 

10,269 

12,604 

12,554 

11,472 

15,725 

22,674 

33,454 

45,260 

54,226 
65,242 

85,427 
128,585 
172,437 



0.31 

3.72 

1.27 

1.07 

.83 

L07 

.81 

.81 

.81 

.66 

.82 

.67 

1.10- 

.90 

.88 

.78 

1.21 

1.00 

.94 

.95 

.82 

.82 

.86 
.97 
.86 



Per- 
ma- 
nent 
disa- 
bUity 



2.90 
2.74 
2.81 
1.86 
L71 
1.62 
1.97 
1.93 
2.09 
2.39 
2.43 
2.49 
2.72 
2.42 



Tem- 
po- 
rary 
disa- 
bUity. 



Num- 
ber of 
aU 
acci- 
dents 
per 
1,000 
in- 
sured. 



28 
19 
90 
57 
63 
50 
5.37 
7.00 



2.23 
4.28 
5.99 



7.47 
22.02 
37.14 
58.48 
60.29 
55.54 
54.59 
52.36 
59.06 
60.82 
60.34 
66.84 
75.84 
74.76 
61.13 
73.73 
87.25 
92.75 
100.84 
136.63 
138.97 
152.80 

63.13 

87.40 

143.10 



10.68 
28.48 
41.22 
61.41 
62.83 
58.23 
57.37 
55.10 
61.96 
63.87 
63.59 
70.00 
79.66 
78.08 
64.29 
77.70 
92.36 
98.32 
107. 41 
143.08 
145.16 
160.62 

66.22 

92.65 

149.95 



Per cent of aoci- 
dents resulting 
in— 



Death 



Per- 
ma- 
nent 
disa- 
bility. 



Tem- 
po- 
rary 

disa- 
bUity. 



2.8> 

13.07 

3.08 

1.74 

1.33 

1.84 

1.42 

1.48 

1.31 

1.03 

L29 

.95 

1.38 

1.15 

1.38 

1.01 

1.31 

1.01 

.88 

.67 

.57 

.51 

1.30 

1.05 

.57 



27.14 
9.63 
6.82 
3.03 
2.72 
2.78 
3.43 
3.50 
3.37 
3.74 
3.82 
3.57 
3.42 
3.11 
3.54 
4.11 
4.^22 
4.65 
5.24 
3.84 
3.70 
4.36 

3.37 

4.62 
4.00 



70.00 

77.30 

90.10 

95.23 

95.95 

95.38 

95.15 

95.02 

95.32 

96.23 

94.89 

95.48 

96.20 

95.74 

95.08 

94.88 

94.47 

94.34 

98.88 

96.49 

95.73 

96.13 

96.33 
94.33 
95.43 



In addition to the increase of accidents there was also an increase 
in the average amount of compensation. In the following table the 
figures do not refer to the amount of compensation paid during any- 
one year, but the amount paid in compensation for accidents occurring 
during the year. Such a method of presentation is much more accu- 
rate and valuable, though it causes considerable delay, as the figures 
for the last five or six years are always subje(?t to correction because 
some claims remain unsettled for several years. The marked increase 
of the average amount of compensation per case from $9.92 in 1898 to 
$17.93 in 1899 shows the effects of the act of 1898, which regulated 
the amounts of compensation and increased it for both the fatal 
cases and those leading to permanent disability. Under the volun- 
tary system the average amount paid for a fatal accident fluctuated 
between $140.17 and $243.74; under the law of 1898 it immediately 
increased to $548.02, and in 1905 was $570.69. In cases of per- 
manent disabihty the average amount of compensation under the 
voluntary sytem was under 500 lire ($96.50), and immediately after 
the passing of the law of 1898 increased to nearly 1,000 lire ($193). 



CHAPTEB VII.-~W0BKMEN'S INSUKANCE IN ITALY. I773 

T^^-" ---CK^fN^T^Vx^^^^^^^^^ BV THE NATIONAL 

YEAR, BY RESULT OF INJURY. 18^ TO 1^ OCCIDENTS OCCURRING IN EACH 

[Source: AttI della Cassa Nazlonai« ^' aooi . 

_ "^ ''^^^.^S-^^^,^;^^->{^y^P^ au, Lav... v„u.. 




Year. 



Compensation paid out for accidents resulting in- 



Death. 



Amount. 



}^ «280 

IB I 15,556 

9,937 



1887 

1888 

1889 

1890 

1891, 

1892. 

1893. 

1894. 

1895. 

1896. 

1897. 

1898. 

1899. 

1900. 

1901. 

1902. 

1903. 

1904. 

1905.. 

1906.. 



Per 

cent of 

total 



Permanent dis- 
ability. 



1888 to 1898. 
1899 to 1903. 
1904 to 1906.. 



11,233 
11,201 
19,019 
17,606 
17,123 
19,983 
19,391 
27,542 
21,809 
38,967 
32,317 
86,587 
91,261 
177,573 
211,176 
255,952 
209,878 
175,201 
186,026 

236,192 
822,126 
571,105 



17.73 

68.68 

41.18 

30.78 

25.00 

30.10 

27.01 

24.75 

26.67 

22.69 

29.25 

22.19 

29.85 

25.95 

42.09 

33.76 

40.23 

32.74 

28.67 

22.66 

21.29 

18.77 



Amount. 



$1,173 
4,715 
8,003 
9,684 
11,400 
16,204 
18,814 
22,260 
21,081 
28,375 
29,458 
33,015 
37,-590 
36,593 
76,553 
120,201 
176, 052 
297,286 
455,587 
487,155 
430,690 
553, 959 



Per 

cent of 

total. 



Temporary 
disability. 



Total 

foraU 

accidents. 



Average compensation paid 
in case of— 



Amount. 



26.64 264,474 
33.49 1,126,100 
20.84 1,471,804 



74.20 

20.82 

33.17 

26.54 

25.45 

25.64 

28.86 

32.17 

28.13 

33.20 

31.29 

33.60 

28.79 

29.44 

37.21 

44.47 

39.89 

46.09 

51.04 

52.60 

52.34 

55.88 



29.83 
45.87 
53.71 



$128 
2,379 
6,190 
15,577 
22,203 
27,971 
28,769 
29,808 
33,865 
37,699 
37,159 
43.437 
53,988 
55,549 
42,572 
58,831 
87,763 
136,543 
181.096 
229,073 
21fi, 981 
251,321 

386,025 

506.806 
697. 375 



Per 

cent of 

total. 



43.53 

20.64 
25.45 



SI, 581 
22,650 
24,130 
36,494 
44,804 
63,194 
65,189 
69,191 
74,929 
85,465 
94,159 
98,261 
130,545 
124,459 
205,712 
270,293 
441.388 
645.005 
892,635 
926.106 
822,872 
991,306 



886,691 
2.455.032 
2,740,284 




$140. 17 
170.95 
211. 43 
181. 18 
172. 32 
188.31 
209.60 
192.39 
208.16 
236.48 
243. 74 
230.30 
223.95 
222.88 
548.02 
573. 97 
595.88 
622.94 
641.48 
594. .55 
570.69 
556.96 

212. 79 
607.63 
573.00 



$61.75 
70.38 
76.95 
89.67 
85.72 
105.91 
92.68 
105.50 
85.35 
94.90 
87.67 
90.21 
87.22 
93.98 
188.55 
186.07 
184.15 
191.30 
192.07 
239.15 
214. 81 
194.78 

91.95 
189.77 
213. 74 



$2.60 
4.42 
4.50 
4.59 
4.73 
5.33 
5.10 
5.21 
4.85 
4.95 
4.46 
4.43 
4.50 
4.62 
3.90 
3.94 
4.10 
4.33 
4.26 
4.53 
4.18 
4.05 

4.74 
4.18 
4.24 



$22.59 
32.54 
15.82 
10.24 
9.16 
11.48 
11.01 
11.49 
10.24 
10.69 
10.72 
9.57 
10.36 
9.92 
17.93 
17.19 
19.47 
19.28 
19.72 
17.48 
15.18 
15.19 

10.38 
19.11 
15.89 



compared with the Italkn wiges °'^''*^'''^^^ considerable when 
nortLt^rpZlSr"? ^^^ r^^ '^^ ^'- '-* *^We does 

liability. Ti.:f^c^c^^Xht^TzVrr''''''''''' '^^ ^-"p'^---' 

liability payments ^ndVeZpJZnth^' ''""""* "^ employe,.' 
the entire compensation paCenS T^! /T"'""'' constituted of 
year are naturally very gfeTbut ih A^'^t^at'ons from year to 

payments since 1898 wh!n th. 7"^ '^'''^^^ ^^'^^ i'^ ^^<^i^ 

waspassed,isveryslSffi;ant *t ^r^^T T'^^'^* '"^"'^^''^ 1*^ 
the vast maioritv oTn^i^ • P/^*"^ ^^"^ *^« **ble on page 1770 

class-thaTk,Thll?uSh ""'"^ '" °' *^« combined "^^ollective 
according to the Kch i^^^^^^^^^ of employee' liability-bu 

^ault only, and is ^^J^^^Z:^^:^:^^^ ^^^ 



1774 



KEPOKT OF THE COMMISSIONER OF LABOR. 



PROPORTION BETWEEN EMPLOYERS' LIABILITY PAYMENTS AND TOTAL AMOUNT 

OF INDEMNITY PAID, 1884 TO 1906. 

[Source: Attl della Cassa Nazionale d' Assicurazione per gl' InfortunJ degli Operai sul Lavoro. Verbale 
della Seduta del 22 dicembre 1908 del Consiglio Superiore e Bilancio Coiisuntivo del 1907. M ilano, 1909.1 



Year. 



1884.... 
1885..-. 
1886.... 
1887.... 
1888.... 
1889.... 
1890.... 
1891.... 
1892.... 
1893.... 
1894. . . . 
1895.... 
1896..., 



Total 
indemnity 
paid (in- 
cluding 
liability 
payments) , 



$1,581 
38,550 
25,270 
37, 194 
45,351 
64,040 
73, 136 
71,719 
79,874 
88,749 
100,623 
102,166 



Employers' liability 


payments. 




Per cent 


Amount. 


of total 
indem- 




nity. 


" *$i5*899" 


4i.'24 


1,139 


4.51 


700 


L88 


546 


1.20 


846 


1.32 


7,947 


10.87 


2,528 


3.52 


4,945 


6.19 


3,284 


3.70 


6,464 


6.42 


3,905 


3.82 



Year. 



1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 



Total 
Indemnity 
paid (in- 
cluding 
liability 
payments), 



1884 to 1898. 
1899 to 1906. 



$134,049 
128.521 
207,473 
271,881 
444,341 
656,432 
901,116 
930, 438 
824,589 
991,407 

990,823 
5,227,677 



Employes' liability 
payments. 



Amount. 



$3,504 
4,(h;2 
1,701 
1,58K 
2,953 

11,427 

8,481 

4,132 

1.71S 

101 

55,7m 
32,361 



Per cent 
of total 
indem- 
nity. 



2.61 
3.16 
.85 
.58 
.66 
L74 
.94 
.47 
.21 
.01 

5.63 
.62 



The general results of the operation of this institution in the 
separate industrial groups to which the insured belong are shown in 
the following three tables for a period of four years, 1899 to 1902. 
By thus combining the data for a number of years lai^er numbers are 
obtained and the averages and proportions are more trustworthy 
than for a single year. The data for individual insurance are not 
included in these tables. 

One of the most interesting things brought out by the following 
table is the proportion between the premiums and the wage expense 
in the various industrial branches. The lowest relative cost is found 
in the textile industry, only 0.47 of 1 per cent of the wage expense 
being paid as premiums. The highest, nearly 3 per cent, is quite 
unexpectedly found in agriculture. This is easily explained, how- 
ever, by the fact that only persons tending agricultural macliinery 
are subject by the law to compulsory insurance. With this excep- 
tion, mining shows the highest percentage, followed by construction. 
Among the industries showing a low relative cost are found clothing, 
paper and printing, brick, earthen and glass ware, and even transpor- 
tation (which does not include many railroad employees, as these are 
protected mainly by the railroad mutual funds). 

The proportion between indemnity paid and premiums collected 
shows very interesting fluctuations. It demonstrates that the actual 
cost of accidents often varies considerably from the expected cost. 
Thus in the brick and china manufacturing industry and in mining 
the actual cost was very much higher than the expected cost as rep- 
resented by the premium charged, while in the paper and printing 
industry it was only about two-fifths of what was exj)ectedj in 
clothing and in textiles it was about seven-tenths. 



CHAPTEK TII.-WOEKMEN's IKSUEANCE IK ITALY. 1775 

BY INDUSTRIES, 1899 TO L NATIONAL ACCIDENT INSURANCE INSTITUTION^ 



ISourc: B„.,e..to„ dl Noti* su. C,«Ut„ , ™„a P«v.den«, „.,, ,^. j 




Indemnity insured for— 



Death and 
pennanent 
disability. 



Premiums 
received. 



Agriculture 

Brick, earthen and elass 
ware 

Building and 'ooiistfuol 
tion 

Chemicals, etc'.'.'.".' .".".■ " " ' 

Clothing 

Electricity '.'. 

Food oil, andtobaocoll.' 

Machmery 

Metal working 



'$1,131,768 

2,411,757 

28, 123, 573 
7,139,843 
206,600 
1,346,248 
3,301,663 
7,021,850 



Temporary 
disability 



Mining.:::—::::::;- d'Ul'm 
S?p?^'.p™tii»g.etc.::::: Iidlim 



Textiles 

Transporta'tionV.V." 
Woodworking. 
Other industries".* 



8,004,213 

17,089,850 

1,877,770 

2,493,625 



Total. 



S5, 093, 532 
12,058,783 

140,561,472 

35, 688, 165 
1,032.999 
6,731,239 
16,483,644 
35,084,587 
26,327,880 
76,223,010 
12.750,410 
40,017.484 
84. 198, 270 
9,380,782 
5.494,412 



Amoimt. 



Indemnity paid. 



103,236,290 507,126,669 



$553,306 

1,211,775 

14,146,474 
3, 617, 479 
103,300 
701.187 
1,705,348 
3,569.121 
2,707,654 
8,165,581 
1,356,724 
4,225,617 
8,507.301 
990,708 
848,242 



*32,508 2.87 
17,651 .73 



Amount. 



Per 

cent 

of 

wages 

paid. 



Per 

cent 

ofpre- 

miunu. 



552,851 
88,168 
1,042 
18, 167 
37,583 
94,750 
58,888 

359,656 
15,671 
37,702 

166,009 
26,816 
13,333 



128,077 
23,631 

512. 7(3 
67.832 
718 
15.822 
30,719 
89,321 
59.303 

444.577 

6,559 

27, 1,30 

179.050 

22,572 

8,278 



2.48 
.98 



86.37 
133.88 



52,409,817 1,520,795 j 1.47 :i751^:i^ 



1.82 


92.75 


.95 


76.93 


.35 


68.91 


1.18 


87.09 


.93 


81.74 


1.27 


94.27 


1.12 


100.70 


2.91 


123.61 


.26 


41.85 


.34 


71.96 


1.05 


107.86 


1.20 


84.17 


.33 


62.09 



1.47 



99.71 






'^^;;;^^^^o^^^no^i^ 3UI c«mto e su>U Previdea^, M.,, .907., 




1776 



REPOKT OP THE COMMISSIONER OF LABOR. 



The following table shows, by industries and results of accidents, 
the indemnity paid during the four-year period, 1899 to 1902, to 
persons insured under the collective accident insurance of the 
National Accident Insurance Institution : 

TOTAL AND AVERAGE PER CASE OF INDEMNITY PAID UNDER THE COLLECTrV^E 
ACCIDENT INSURANCE OF THE NATIONAL ACCIDENT INSURANCE INSTITUTION, 
BY INDUSTRIES AND RESULT OF INJURY, 1899 TO 1902. 

[Source: Bollettlno dl Notlzle sul Credito e svdla Prevldenza, May, 1907.] 



Indemnity paid for accidents resulting in— 



Industry. 



Death. 



Amount. 



Agriculture 

Brick, earthen and glass ware. 
Building and construction . . . 

Chemicals, etc 

Clothing 

Electricity 

Food, oil, and tobacco 

Machinery 

Metal working 

Mining 

Paper, printing, etc 

Textiles 

Transportation 

Woodworking 

Other industries 



S6,152 

1,737 

204,534 

26,839 



Total. 



6,426 

5,758 

10,426 

12,975 

199,682 

72 

3,408 

71,388 

5,042 

4,318 



Aver- 
age per 
case. 



^0 
579 
607 
610 



Permanent disa- 
blUty. 



Amoimt. 



558,757 



918 
676 
613 
865 
605 
72 
341 
585 
504 
480 



601 



$16,915 

17,021 

212,602 

23,532 

627 

6,690 

18,766 

52,913 

29,015 

154,273 

4,165 

17,036 

69,320 

11,706 

1,989 



Aver- 
age per 
case. 



636,579 



J277 
200 
195 
208 
157 
197 
182 
169 
148 
198 
83 
122 
186 
108 
199 



TemT)orary dissi- 
IbUity. 



Amount. 



184 



$5,010 

4,873 

95,627 

17,461 

91 

2,697 

6,195 

25,982 

17,312 

90,622 

2,323 

6,686 

38,342 

5,824 

1,971 



Aver- 
age per 
case. 



Ail accidents. 



Amount. 



321,016 



$6.18 

a 21 

4.35 
4 07 
4.14 
3.90 
4.02 
3.27 
a 39 
4.90 
a 69 
2.96 
3.69 
a 76 
a 77 



4.13 



$28,077 
23,631 

512,763 
67,832 
718 
15,822 
30.719 
89.321 
59.303 

444.577 

6.559 

27.130 

179.050 

22.572 

8.278 



Aver- 
age per 
case. 



1,616,362 



$31.65 
14.72 
21.91 
15.24 
27.62 
2L59 
1&58 
ia79 
11.14 
22.67 
9.63 
11.28 
1&45 
ia56 
15.27 



18. 4A 



FINANCIAL STATISTICS. 

In the details of the financial organization a radical change was 
affected by the decree of November 22, 1888. The original agree- 
ments provided that the premiums should be calculated without 
taking into consideration the cost of administration, and that these 
be distributed among the 10 banks pro rata, proportionately to their 
contributions to the guarantee fund. After 10 years of experience 
the banks might be permitted to substitute a definite annual pay- 
ment instead of these pro rata payments, or a lump-sum payment of 
the capitalized value of such annual payments. Half of the surplus 
from the operations of the insurance institution was to be used in 
payment of the guarantee fund in pro rata sums; and as long as the 
entire guarantee fund was not repaid, the interest on the outstanding 
amounts was to be returned to the banks. After the entire guarantee 
fund is repaid from the surplus a part, but not over one-half, of the 
additional surplus determined by the superior council might be used 
for accumulating a reserve fund and part for the benefits of the 

insured. 

This system was abolished by the decree of November 22, 1888. 
According to the system then established the guarantee fund was 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1777 

turned into the treasuiy of the insurance institution which was to 
make use of this fund and the interest from it as of all other reTSu^ 
On the other hand the insurance institution was requked to meet 
all expenses of admmistration. The prohibition to load thLe 
expenses upon the premium rate was abrogated, and the ?o banl 
which signed the agreement were freed from anv further nhLf 
to contribute to the cost of administration. Thelsur^^^^^^^^^ 
was required to build up a reserve fimH ^^^h "'r^^^^^^^^/^s^^i^^ution 

»0 000 li„ <.96,500, .hen «., .„%,„.,. Tt^.lZ^fZ'^ 

As is seen from the statement of resourrp., «r.^ r ki-.- 
resources had grown to 81,313,973 171905 rt two n ' " t 
Items are the reserve for comDensatinn nf .r i Pnncipal 

the year and the original ^ZZ^f^Jn^oZtllml^^^^^ 

has been fircontinuour '""' ''"'^"'"' """^ *^^^' ^^''^'^ 



Year. 



Resources 
on Decem- 
ber 31. 



Liabilities on December 31. 



Guaran- 
tee fund. 



Surplus. 



1889... 

1891... 

1892... 

1893... 

1894... 

1899... 

1900... 

1901... 

1902... 

1903... 

1904... 

1905... 

1906... 

1907... 



$344,895 
370, 198 
387,971 
407, 623 
425,084 
566,171 
609,589 
682,439 
808,464 
970, 109 
1,137,977 
1,313,973 
1,474,675 
1,859,422 



«289,500 
289,500 
289,500 
289,500 
289,500 
289,500 
289,500 
289,500 
289,500 
279,850 
271,586 
279,850 
279,850 
279,850 



$9,723 
13,510 
19,300 
19,300 
19,300 
29,837 
49, 137 
54,040 
54,040 
54,040 



Reserve 
for com- 
pensation 
of cases 
pending. 



Reserve 
for fluc- 
tuation 
of value 
of secu- 
rities. 



$17,894 
24,340 
28,005 
25,655 
34,289 
105,412 
124,400 
195,323 
345,864 
468,888 
592,991 
742,151 
884,483 
1,129,426 



$13,510 
13,510 
27,406 
27,406 
27,406 
27,406 
27,406 
27,406 
47,618 
35,931 
40,644 
23,526 
26,566 



Extraor- 
dinary 
reserve. 



$5,790 
19,300 
28,950 
36,284 
44,390 
57,900 
54,108 
68,578 
43,819 



other 
reserves 

and 
funds. 



77,200 
38,093 
48,250 
38,109 



$1,930 
3,860 
3,860 
3,860 
3,860 
14,128 
27,638 
31,498 
19,682 
17,370 
20,021 
21,962 
27,987 
37,381 



Bills 
payable. 



Surplus 
from 
opera- 
tions of 
the year. 



«Atti della Cassa Nazionale 



I' Assicurazione per gl' Infortuni degli Operai 



$17,557 
3,387 
3,684 
4,051 
4,783 
7,914 
10,497 
16,094 
28,153 
102, 343 
128,270 
171,860 
210, 579 
262,237 



$2,501 
2,791 
1,162 
1,567 
1,556 
34,074 
26,903 



11,978 
19,413 



85,853 



sul Lavoro, 1904-1909. 



1778 



EEPORT OF THE COMMISSIONER OF LABOR. 



In the following tables showing the receipts of the institution 
it was impossible to present comparable data for the entire period 
because of a radical change in -the form of presentation of the 
accounts. The first table represents a purely formal recei])t account. 
The actual income of the institution consists mainly of two items — 
the premiums received and the interest on investments. All other 
revenues were comparatively insignificant, except for 1902 and 1903, 
when they included transfers from the reserves for the purpose of 
covering the deficits from operation during these two years. 

In the table of receipts for 1904 to 1907 the form of tlie account 
has been changed, and the total represents the actual revenue of the 
institution. In 1907 the premiums were about 95 per cent of the 
total receipts. 

RECEIPTS OF THE NATIONAL ACCIDENT INSURANCE INSTITUTION FOR VARIOUS 

YEARS, 1889 TO 1903. 

[Source: Bollettino di Notizie sul Credito e suUa Previdenza. Data for 1890 and 1895 to 1898 not obtainable.] 



Year. 


Reserve 
for com- 
pensation 
of cases 
pending. 


Premiums. 


Interest. 


All other. 


Loss from 
operations. 


Total. 


1889 


$14,758 

21,895 

24,340 

28,006 

25,655 

55,570 

105, 412 

124,400 

195, 323 

345, 864 


$58,220 

87,205 

88,069 

95,621 

100,244 

265,569 

298,610 

384,011 

583,958 

822,341 


$12,478 
17, 169 
18,007 
18,714 
19,436 
22,250 
25,270 
26,973 
28,340 
29,376 


$8,777 
2,577 
2,883 
1,298 
1,651 
1,265 
7,073 
7,478 
054,994 
6 100,361 




$94,233 
128,846 
133,299 
143,639 
146,986 
344,654 
436,365 
654,679 
891 071 


1801 




1892 




1893 




1894 




1899 




1900 




1901 


$11,817 
28,4S6 
12,068 


1902 


1903 


1,310,000 





o Including $53,060 taken from the reserves for payment of claims. 
b Including $67,027 taken from the reserves for payment of claims. 

RECEIPTS OF THE NATIONAL ACCIDENT INSURANCE INSTITUTION. 1904 TO 1907. 

[Source: Atti della Cassa Nazionale d' Assicurazione per gl' Infortuni degli Operai sul Lavoro: Bilancio 

Consuntivo del 1904, 1905, 1906, and 1907.] 



Year. 


Premiums. 


Interest. 


Office fees. 


All other. 


Total. 


1904 


$1,219,249 
1,121,709 
1,244,289 
1,586,953 


$34. 935 
39, 737 

48. .W8 
50,088 


$26,127 
22,631 
25,596 
26,839 


$502 
296 
4.<3 

1, 354 


91,280,813 
1,184,373 
1,318,716 
1,665,234 


1905 


1906 


1907 





On account of a change in the form of keeping the accounts the 
expenditures are also shown in two tables. For the years 1889 to 1^03 
the first table shows the actual indemnity paid during the year, and the 
reserve computed at the end of the year to cover outstanding claims 
as an item of expenditure. The gains from operation are also shown 
as an expense item to balance with the revenue account. For the 
years 1904 to 1907 an effort is made to account for the actual expenses 
of the year, the indemnity for claims accrued duriag the year being 



CHAPTEB Vn.-W0EKMBN'S INSURANCE IN ITALY. 1779 

shown rather than the indenmitv actuallv n«;^ v 
comparisons may be made for the TnlTLS' v"r ""T '""^ 

the tendency to ^aud.e nt pilt ,7eLlfdy !^^^^^^^^ 



Year. 



Indem- 
nity 
paid. 



Reserve 
at end of 
the year 
for com- 
pensation 
of cases 
pending 



1889.. 
1891.. 
1892.. 
1893.. 
1894.. 
1899.. 
1900.. 
1901.. 
1902.. 
1903.. 



Ex- 
pen- 
ditures 
for ad- 
minis- 
tration. 



$44,366 

65,619 

70,652 

76,982 

80,089 

151,692 

240, 713 

307, 621 

472,332 

701,459 



$17,894 

24,340 

28,005 

25,655 

34,289 

105, 412 

124,400 

195, 323 

345,864 

468,888 



$9,820 
13,072 
14,044 
14,859 
16,557 
25, 778 
29,741 
34,937 
45, 932 
60,399 



Medi- 
cal ex- 
penses. 



$2,786 

1,291 

846 

785 

727 

2,277 

3,625 

4,414 

8,359 

13,047 



Legal 
ex- 
penses. 



Ex- 
penses 

for 
inspec- 
tion. 



$373 

36 

755 

474 

1,826 

1,396 

2,273 

2,570 

5,425 

18, 573 



Taxes 
on in- 
vest- 
ments. 



$2,363 
2,846 
4,034 
6,298 
7,953 



$1,647 
2,266 
2,377 
2,470 
3,234 
4,299 
4,893 
5,244 
5,441 
5,423 



Trans- 
ferred 
to re- 
serves. 



All 
other 
ex- 
penses. 



$13,688 
19,033 
15,440 
21,230 
8,106 
16,950 



.1, 



30,838 



157 

398 

18 

618 

602 

211 

971 

536 

1,421 

5,350 



Gain 
from 
opera- 
tions. 



$2,501 
2,791 
1,162 
1,566 
1,556 
34,074 
26,903 



Total. 



I 



$94,232 
128,846 
133,299 
143,639 
146,986 
344,461 
436,365 
554,679 
891,072 
1,311,930 



i^:zrc^:::z'r ^"™ -'^-^^^^^^ — -■ - - - 



Year. 



1904. 
1905. 
1906. 
1907. 



Indemnity 
accrued. 



$924,570 

985,383 

1,119,064 

1,335,393 



Expend! 
tares for 
adminis- 
tration. 



Medical 
expenses 






Legal 
expenses. 



$88,465 

92,790 

111,300 

119,586 



$14, 567 
18,437 
25,280 
36,555 



-■ 



Cost of 
determi- 
nation of 
injuries. 



Expenses 
of inspec- 
tion. 



$30,558 
53,665 
56,014 
61,066 



$3,479 
4,577 
6,523 
7,343 



Taxes on 
invest- 
ments. 



All other 
expenses. 



$8,971 
12,991 
15,025 
19,050 



$5,423 
5,423 
5,423 
2,125 



$2,893 
4,148 
9,431 

17,005 



Total. 



tl, 078, 926 
1,177.414 
1,348,060 
1, 598, 723 



not furnish a satisfaS bit Z Z""' ^^^^^P^^S accounts, do 
results of the insurance SsSion 7 ^°»«l'^«"»'» ^ *« ^^e financial 

report of this institution contains a labKr^'^* ^'l' ''''' *"''"^' 
premiums received with f^n! ?i wmpanng the amount of 

Bame year and^ropX cWel' fP^f^'^^^^ --"? during the 

-eluding the c'omSa^tTaya J: t TS '7 *'^* ''''' 
durmg the year anrl th^ „ i'aj'aoie ror all accidents occurring 

year. As, hCever t£ to^" ''^/t^--t'-ation for the sam! 
Botdefini^lyknl^^J; *"**„', 7""'^* ""^ compensation payable is 

changes, the'annlTstteTtt ItS J^^r"'^"* *° ^'*^^^^ 
tions. In the foUowin.. f«hl» tv. ^ , subsequent modifica- 



1780 



REPORT OP THE COMMISSIONER OF LABOR. 



as far as available. It was impossible to obtain such data for 1885 
to 1888, 1890, and 1895 to 1898. 

Until 1900 the premiums not only covered the compensation paid, 
but left a surplus for meeting the other expenditures, and even per- 
mitted the formation of reserves. But taken together the compen- 
sation and the expenditures of administration very often exceeded 
the amount of premiums received, so tliat evidently the low pre- 
miums were possible only because of the interest from the guarantee 
fund and the accumulated reserves. The proportion between com- 
pensation and premiums became quite alarming in 1901, when the 
compensation exceeded the premiums by 15.71 per cent. Adding 
the cost of administration, the excess of total expenditures over pre- 
miums reached 27.68 per cent in 1901, 23.71 per cent in 1902, and 
21.74 per cent in 1903. Thus the premiums were far too low to cover 
the cost of insurance. The general revision of the rates remedied the 
situation, while the formation of the obligatory mutual association 
for the Sicilian sulphur mines reduced the amount of compensation 
paid very materially. 

The favorable proportion between the compensation paid and the 
premiums, and the seemingly large surplus for the last few years are 
deceptive because due to delay only, many claims for beneiits remaining 
unsettled. For these years, therefore, the amount of compensation 
payable is nearer to the truth than the amount of compensation paid 
out for each year up to September, 1908. For 1905 the amount paid 
out as compensation was $824,589, while the amount payable was 
computed at the end of the year at $985,383, and it is reasonable to 
assume that for 1905, as for all the preceding years, the amount 
eventually paid would be higher than the computed amount due. 
For 1906 the amount paid out up to September 30, 1908, was $991,407, 
while the computed amount payable was $1,119,064. Taking these 
amounts, the proportion of the compensation to the premiums for 
1905 is 87.85 per cent, and not 73.51 per cent, and adding the expense 
account, 104.48 per cent and not 90.1 per cent. For 1906 the pro- 
portion is 89.94 per cent instead of 79.68 per cent for compensation 
alone, and 107.90 per cent instead of 97.65 per cent for compensation 
and expenses together. For 1907, the last year reported, the amount 
actually paid was comparatively small; the amount payable was 
$1,335,393, or 84.15 per cent of the premiums, while the expense 
account was $263,330, or 16.59 per ceut of the premiums. The total 
cost was therefore 100.74 per cent of the premiums. 



CH.4PTER VII.— WORKMEN'S INSURANCE IN ITALY. 1781 

COMPARISON BETWEEN PREMTTTU*? rnMT>Ti'XTo . mx^. 
1908, AND TOTAL EXPENDWURES OP THE v^TrnM^f "''™ SEPTEMBER 30. 
INSTITUTION, FOR VARIOUS YEARS f889?o IW OCCIDENT INSURANCE 

1907. Data for 1890 and 1895 to 189llot o'bSiSbl^r ° Conrantivo del 1904, fw,TJS?SJd 



Year. 



Premiums 
received. 



1889.. 

1891.. 

1892.. 

1893.. 

1894.. 

1899.. 

1900.. 

1901.. 

1902.. 

1903.. 

1904.. 

1905.. 

1906.. 



$58,220 
87,205 
88,069 
95,621 
100,244 
265,569 
298,610 
384,011 
583,958 
822,341 
1,219,249 
1,121,709 
1,244,289 



Compen- 
sation 

paid for 

each year 
(up to 

Sept. 30, 
1908). 



145,351 

73, 136 

71, 719 

79,874 

88,749 

207. 473 

271,881 

444,341 

656,432 

901,116 

930, 438 

824, 589 

991,407 



General 
ex- 
penses, (a) 



Total com- 
pensation 
and ex- 
penses. 



Exoefis of— 



Pre- 
miums. 



S13.244 
14,399 
15,656 
16,679 
19,381 
31.814 
38,485 
45,974 
66,013 
99,971 
148,667 
186, 586 
223,572 



S58,595 

87,535 

87,375 

96,553 

108, 130 

239.287 

310,366 

490,315 

722. 445 

1,001,087 

1,079,105 

1.011,175 

1,214,979 



Per cent of premiums. 



Total 
pay- 
ments. 



Compen- 
sation. 



S694 



26,282 



•375 
330 



932 
7.886 



140,144 

110,534 

29,310 



11,756 
106.304 
138, 487 
178. 746 




77.90 
83.87 
81.43 
83.53 
88.53 
78.12 
91.05 
115. 71 
112.41 
109. .58 
76.31 
73.51 
79.68 



Expenses. 



22.75 

16.51 

17.78 

17.44 

19.33 

11.98 

12.89 

11.97 

11.30 

12.16 

12.19 

16.63 

17.97 



Total 
payments. 



100.65 
100.38 

99.21 
100.97 
107.86 

90.10 
103.94 
127.68 
123.71 
121. 74 

88.50 

90.14 
97. 6S 



mmor 



disbursements, not considered 



exli'n'ii^ofadSysSon^ investments, and in some years other 



The per capita amount of premium anH «!«.. r.f 
been computed and are ^hnwnT T Tn ^^ <^onipensation have 

the entire life of the Tst tuZ /^^/^"^^^^^^ ^-^le. By dividing 
the accident insLlVe^ ^ ^^^^^^^ ^ "T^'-T' f^^^"^ '^ 

and rates of 1898 (1899 t^ l^m<^ I a 11' ! ^^^^ "^^^^ *^^ ^^^ 
1903 (1904 to 1906)-ia v^^^^^ ''''^'' '^' amendments of 

average amount of LorpZ t.""^ '^''*'^^' ^ ^^^^^^^- The 
the fiSt PeHod^lS^d^™,^^^^^^^^^^^^ llZ «/ -ts <iuHng 

The average amount of indeLVtrrJd has nnf v T^ '^' ^"''• 
from these averages excenf ih^i ^f i ""^ ^^™^ ^^^ ^"ch 

considerably smalS becTusfr^^^ i ' ^""^ '^^'^^^"^ ^^"^^ ^' ^^s 
had not been s^tied: ^^ '^'"^ "^^^ ^"^^^ '^^^ ^^^1. 



1782 



REPORT OF THE COMMISSIONER OF LABOR. 



PROPORTION BETWEEN PREMIUMS AND INDEMNITY PAID OUT BY THE NATIONAL 

ACCIDENT INSURANCE INSTITUTION, 1884 TO 1906. 

[Source: Atti della Cassa Nazionale d'Assicurazione Bilancio Consuntivo del 1907.] 



Year. 



1884. 
1885. 
1886. 
1887. 
1888. 
1889. 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 



1884 to 1898. 
1899 to 1903. 
1904 to 1906. 



Average 

number of 

persons 

insured 

throughout 

the year. 



67 

6,556 

24,440 

36,992 

58,023 

77,876 

94,507 

103,238 

109,253 

118, 133 

125, 119 

138,192 

146,696 

158,214 

160, 772 

178,439 

202,355 

245, 501 

340,256 

421,363 

370, 198 

373,570 

406,183 

1,358.078 
1.387.914 
1,149,951 



Amount of premi- 
ums received. 



Total. 



$25 

3,327 

17,824 

28,123 

44,881 

58,220 

75,286 

87,205 

88,069 

95,621 

100,244 

115,986 

128, 167 

144, 178 

148, 183 

265,569 

298,610 

384,011 

583,958 

822,341 

1,219,249 

1,121,709 

1,244,289 

1, 135, 339 
2,354,489 
3,585,247 



Average 

person 
insured. 



$0.37 

.51 

.73 

.76 

.77 

.75 

.80 

.84 

.81 

.81 

.80 

.84 

.87 

.91 

.92 

1.49 

1.48 

1.56 

1.72 

1.95 

3.29 

3.00 

3.06 

.84 
1.70 
3.12 



Amount of indem- 
nity paid. (o) 



Total. 



Average 

per 

person 

insured. 



$1,561 

38,560 

25,270 

37,194 

45,361 

64,040 

73,136 

71,719 

79,874 

88,749 

100, 623 

102,166 

134. 049 

128,521 

207,473 

271,881 

444,341 

656, 432 

901,116 

930, 4.J8 

824,5>(9 

991, 407 

990,823 
2,481,243 
2,746,434 



10.24 

1.58 

.68 

.64 

.58 

.68 

.71 

.66 

.68 

.71 

.73 

.70 

.85 

.80 

1.16 

1.34 

1.81 

1.93 

2. 14 

2.51 

2.21 

2.44 

.73 
1.79 
2.39 



eachylar"™^'^*^^'^^^^^^^^*''"^® all payments made up to Sept. 30, 1908, for accidents occurring in 

THE COMPULSOBT MUTUAL ACCIDENT INSURANCE ASSOCIATION FOB 

SICILIAN SULPHUR MINES. 

The parliamentary commission whicli studied the bill of 1903 in- 
tended to hmit its provisions concerning compulsory employers' mutual 
accident insurance associations to the industry of sulphur mining in 
Sicily, but the law as passed did not contain the specification, because 
of the argument that conditions similar to those in that industry 
might develop in other industries also. As a matter of fact the sul- 
phur mining industry of Sicily was the first to be organized under the 
law on July 11, 1904. 

The difficulties arising out of the apphcation of the law of 1904 to' 
the sulphur mines of Sicily were claimed to be inherent in the pecuhar 
organization of that industry. Small undertakings predominate. 
Wlien the compulsory association was formed it embraced about 900 
employers and nearly 40,000 employees. Subcontracting is very 
common. Often the proprietor divides his sulphur beds among 
many contractors, and even one sulphur mine may be exploited by 
several contractors, each having an independent shaft of entry. In 
addition, the usual method of payment is in piece wages. These 
factors made the differentiation of the employer and employee and the 



CHAPTER Vn.— workmen's INSURANCE IN ITALY. 1783 

determination of the earnings and other details of the application of 
the law very difficult. The operators complained of tKxcessive 
charges imposed by the law. The national insurance insSL 
was forced to put these mines in one of the high ^ent^^^^^^^ 

^tt:f ^Thr^^^^^^^ ^^™^ ^' premiums'for uLZluT^ 
anions. lUe pnvate insurance companies had comnI«in»^ ^f tu 
frequency of frauds on the part of thelaU empioye^inS af te ft" 
years of unsatisfactory experience left the entire fidd to the !f ^ 
insurance institution which by its constituSn f p^^ed Sot 
refusing any risks. Protracted lawsuits and delays in the patSenTS 
mdemnities were frequent and caused hardsliio to h« in; ^ . 
men, and the national insurance instituUon in whit 27^t Tht 

SoTwH "'"'"'*' '"'^''''^ " ^'^^^y deficit during Lyel 1899 to 
1903 which was especially large in the Palermo branch due to !'- 

oc^al IZafins^uf^^ circumstances emphasized the neces itv o a 
bettToltrilToSr Icco'rrT*''' ""T' "^^'^ ^^'^ --kj 
feehng of econo'S 'and ^ZsZlZT^^l^V'"'^'' ^^V^^ 
tary association futUe ^ ^°P^ '*''" * ^<>l"a- 

commerce and of art^ in^^ • . ■' '*^^°*^ °* ^'^^ <"^ambers of 

July 11, 1904, under the name of Ihp S;I I nur^ ^"^"^ ^^^^^ ""^ 
for Mutual Insurance IJITJ ^ f'\^}''^^'^ Obhgatory Association 

Aiding in,..risi:!zi ii^zt^'^zz 2 si^-r-' 

ch?mbt TtL'?LlwrS'°?^^ ^^r^' '-^ ^^ ^y ^o^^ 

the operation of th LTas a^t" to Irel'T^ modifications in 
industry and to thp FmL *PP"®d *« ^^^ Sicihan sulphur-mining 

elation.^ These modffiS''' "^rj"''"'^ ''"*"** ^-^^^-^e Ass^ 
among the inS^emXyeSco^ Tc "^*'""^ "^ ^^*"^"t-g 
meas to be taken to /ollertlifn^r/fuTdr ""'^ '''' ^" *^^ 

Ma; T^2f::£tff:^ i: ''-''r'- *>* ^«p-^- - 

pointed out hat the method Thw-k',"'*^"'^'^' ^""^ ^'""'"«'-«« 



1 



1784 



REPORT OF THE COMMISSIONER OF LABOR. 



vidual employers worked injustice, because of frequent deceptions in 
the statements of some of the employers. A comparison of the data 
of the mining office of the district of Caltanisetta with the data of the 
National Accident Insurance Institution showed that the amount 
of wages certified was about one-half of the amount actually paid. 
The ministry therefore accepted the suggestions of the SiciHan mining 
association, indorsed by several of the chambers of commerce of 
Sicily, that the assessments be made not according to the wage 
expense, but according to the quantity of sulphur produced, and that 
they be collected in connection with the railway transportation of the 
product, so as to make impossible any evasion of the assessments. 

OPERATIONS UNDER THE LAW OF JULY 14, 1907. 

The conditions of the application of the compensation legislation 
by the Employers' Compulsory Mutual Accident Insurance Associa- 
tion were considerably modified by the new law of July 14, 1907, 
referring especially to tliis obligatory association. The chief object of 
this law was further to eliminate the opportunities of defrauding the 
association. The special law of July 11,1 904, was aimed at the frauds 
in connection with the payment of contributions by the members, but 
It left untouched the opportunities for fraud in connection with the 
payment of compensation. 

The minister of agriculture, mdustry, and commerce in his memorial 
accompanying the bill introduced mto the Chamber of Deputies on 
June 9, 1907, declared that the law of July 1 1, 1904, aggravated frauds 
in connection with the statements of wages and earnings upon which 
the computation of compensation is based, because it took away the 
restraint upon exaggeration which existed when the employers' con- 
tributions were proportionate to their wage expense. It was pointed 
out in the same memorial that the conditions of contracting and sub- 
contracting made exaggerations of wages especially difficult to detect. 
The general standard of the law making the annual earnings ec^ual to 
300 times the daily wage was also declared to be excessive for the 
Sicilian mining industry, since the actual number of working days 
varied in the different provinces from 160 to 248. The frequent 
fraudulent practices led to excessive litigation, which proved an 
additional expense to the insurance association. 

To remedy these conditions the association made repeated requests 
upon the Government that a system of fixed wage schedules for cer- 
tain occupations be substituted for the method of individual compu- 
tation of the earnings, and the law of July 14, 1907, is i)rimarily an 
adaptation of this suggestion. Connected with this are measures for 
better organization of medical help and for a system of medical 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1785 

inspection Which will enable the mutual insurance association better 
to control the payment of compensation («) 

The law was to go into effect after the pubhcation of the necessary 
regulations, which were prepared by the ministry, were approved'y 
msX decree of June 14, 1908, and were promulgated oE August 6^; 

It will be unnecessary to give a complete analysis of the workings of 
this emp oyers' compulsory mutual insurance association, because in 
Its mam features it must follow the provisions of the gene;al accident 
insurance law, which was fully analyzed in an earlie^r Ittn The 
purpose and^scope of this institution and the extent of the industrial 
field covered by it are sufficiently well indicated in its titl The 
provisions concerning persons injured, the character of Mitv 
compensated, and the benefit payments all remain uncLnger o£ 
those features of its activity will be presented which show a materS 
deviation from the methods required by the general law 

Medical HELP.^The association is required by the law of 1907 to 
orgamze a service of first medical and pharmaceutical aid to the 
injured workers in regular stations, without any cosHo the slhur 
mine owners. In addition to the medical helpf the physfcLn^^^^^^^ 
nected with these medical aid stations must furnish thT ^.i 
and final medical certificates without anTcostrh ^'f^^^^ 

10 levy an additional tonnaffp tnx imnn iU^ o. i u • , ">'""ii«;u 
t^ tu • • . ^""unge lax upon tne sulphur mined su-onrAinr, 

to the provisions of the law of July 11 1904 h„i ^77' *'*"'°™"'g 
centesimi (9.7 cents) per ton " "'^ ' ^ ' ^ ^"4' *>"* n«t to exceed 50 

fraud/the law of 19ol confe^^^^^^ ^"^^ P--We 

cases of medical insnec^^n , '^'*'*'°*' P°^«' «° ^he association in 

the associationtlXtd ofleTarm^JisSela^tr^^d' 

tion'to be made a soon LToSbe Ld? ^'^^'•. ^ \'--%a- 
In case the injured Dersonp;f,,o?'/ ^^ appomts the expert, 
it may be a^med hv Th '^ ^ "^u"*"'^** *^^ "^^^'^^^ examination, 

that Lisz:2Lt't:ioT''''^7' r''''" "^*^™« p--- 

caused by it. *^ *^^ *'="''*'^* *^ evidently have been 

4t:T it:'and Si'tavl^r;? by the association which has 

lost because of the examlnaZ f ^T'■'** ""^P^^^^ ^"^ ^«g^« 
expenses, if any ^''*°"''**'°° ^^ reimbursement of his travelbg 

" BonetUno del.- Uffieio del Lav„,„. Vol. x, Aug. 2. 190S. pp. ,n to m. 



1786 



EEPORT OF THE COMMISSIONER OF LABOB. 



4 



Sources of Income.— The expenses of the obligatory mutual acci- 
dent insurance association of the operators of Sicilian sulphur mines 
IS met by a special tax of 1.50 lire (29 cents) per ton of sulphur 
obtained or of mineral containing more than 65 per cent of pure 
sulphur. The assessment upon mineral containing 65 per cent and 
less is reduced by one-third. 

As stated in the report of the minister of May 23, 1904, this rate of 
assessments was computed in the following way : («) The total amount 
of compensation annually paid to Sicilian sulphur miners by the 
National Accident Insurance Institution in 1901 and 1902, when it 
assumed all insurance in that region, was about 513,000 lire ($99,009). 
At that time compensation was paid according to the law of 1898. It 
was computed that on an average the cost under the law of 1904 
would exceed that under the older law by about 20 per cent, and an 
additional 20 per cent was allowed for the expenses of administration 
and the formation of the reserve, which brought the probable cost 
up to almost 718,000 lire ($138,574). Since the average annual pro- 
duction of sulphur amounted to about 500,000 tons, it was estimated 
that the tax of 1.50 lire (29 cents) per ton would produce the requisite 
revenue with a necessary margin of safety. 

In case the tax yields more revenue than is needed, and the general 
meeting of the association expresses the desire to have the tax 
reduced, the administrative council may petition the ministry to that 
effect, and after consultation with the Council of State, such reduction 
may be ordered by the Government, but it may require a guarantee of 
the solvency of the institution. 

The collection of the contribution wa.^ combined with the trans- 
portation of sulphur and sulphur minerals, because this was consid- 
ered the best way to reach all the sulphur mined; and since most of 
the sulphur is transported by rail, the railroad station nearest to the 
mines was considered the most convenient place for accounting for 
the tonnage and for receiving the contribution. The raUroad com- 
panies operating in Sicily agreed to assume the duty of collectin<' the 
contribution in connection with the freight charges. The coutribu- 
tion may be paid at the time of shipment or it.may be paid at the 
time of delivery if the shipper assigns the payment to the consignee 
by a proper indorsement upon the bill of lading and the railroad 
transfers the amounts received to the insurance association. The fee 
charged by the raUroad for making collections is very small, it being 
5 centesuni (1 cent) per each 10 Hre ($1.93), with a minimum charge 
of 10 centesinu (2 cents). ■ 

The regulation of method of payment of contributions for the sul- 
phur transported over ordinary roads was left to the constitution of 
the association. 



« Bollettino di Notizie buI Credito e sulla Previdenza, 1904, pp. 827 to 835. 



CHAPTEE VII.— workmen's INSURANCE IN ITALY. 1787 

The same rule apphes to the amount and method of payment of 
contributions to cover the risk of work which is tempora'iSTu^^^^^^^^^^ 

Determination of BENEFiTs.-The general method of determin 
mg the benefits due the workmen injured in the Sicihan sulphu Ss" 
remains the same as provided for by the laws of 1898 and 1Q0'[ ^^ 
fied m 1904) for all other industrii. The diirSLT^^^^^^^^^^^ 

June74 to? eon' ''''1^' \^ ?'"^^^^^ -gulationstsu d o^ 
TrZ II:- V 1' ^""^ ^^^ "^^^^^^ ^^ determination of the wa^es 

upon which the amount of compensation depends ^ ' 

-Ueterminationof Wages— InstPflH off iL ^^ * r x i 

employees hired for a specified annual remuneratior tW 
aken in ca.e of death or permanent disaS^Tn comD^L J"" 1 
temporary disabiUty, the daily wage is arrived It ^/*™P^'^**'°'^ ^^ 
annual remuneration by 365 Forlu othpT i ^ ^'^"'^ ^^^ 

through division of the TZ'.-t *^^ ""^^ '"""* ^ "Stained 

work4 daysTthe tarious p^lZT'^ '^ ^'^^ ^^^'««« --»>- o^ 

paSir:^ ftrrof r f^^ -r. ^-^ -^'^ -* -'^ ^- -- 

by age grouDs 2TiZ t t. '"Ip*"""" '"^S provinces but also 
fact Lf Sr;nTil 2S' T ^^'^'''^'''^ complicated by the 

ferent occupSalJotT Surtl.r^- '""^ *'"?^'' '"^^ *•>« '^- 
groups, as foUows- UnSer 2 Ji ' "f, ""'"^'^ ^'^ '^^ded into four 
under 60 year^ and 60 v.« ^T' ^ ^""^ "°^«'" ^^ y^^^' 45 and 
divided iXZ'e age grour'underTr '''" '^"'^"^ '»''-- -« 
25 and un<ler 50 years M«ndY, .«^""^' ^^ ^'^'^ """^^^ 25 yeare, 

and the employed oSuld.nT '° r""^' ""^ '^^ y^*"^ *'''' <>-- 
P yees occupied in transporting the sulphur are arranged 



1788 



EEPOBT OF THE COMMISSIONER OF LABOR. 



also m five groups, but these groups slightly differ from the age 
grouping of the common laborers : Under 20 years, 20 and under 40 
years, 40 and under 50 years, 50 and under 60 years, and 60 years 
and over. For all other occupations a slightly different age classifi- 
cation was adopted: Under 15 years, 15 and under 21 years, 21 and 
under 30 years, 30 and under 60 years, and 60 years and over. 

For all age groups except the highest, the demand of the law ia 
compUed with in obtaining the annual earnings by multiplying the 
daily wage by the average number of working days. For the age 
group of 60 years and over, the annual earnings are obtauied by 
subtracting 25 per cent from the product of the multiplication of the 
daily wage by the average number of working days. 

Contract workers who, though working themselves, employ other 
wage workers are assumed to receive the wage of the highest wage 
group to which any one of their employees belongs. 

Five years after going into effect the tables must be revised, and 
the procedure of the next revision is prescribed in great detail in the 
regulations of June 14, 1908. Kevision of the tables may be ordered 
after two years, if a demand for such revision is made either by the 
Sicilian Mutual Accident Insurance Association or by 100 workmen 
in any one province, and if the demand is approved by the head 
engineer, the district mining office of Caltanisetta approves it after 
investigation. The assigning of the employees to the different wage 
groups mdicated in the tables must proceed m comphance with the 
regulations. At the time of employment, the employer must inform 
the employee to which group of average wages he is assigned. This 
must be done in the presence of witnesses and with th(5 consent of 
the employee, who may raise objections against the assignment, and 
if the employer does not agree with the employee, the statements of 
both parties must be recorded. * The certificate of assignment must 
be made m writing and signed by both parties, and it must contain 
the objections of the employee, if any. Appeals from this assign- 
ment may be made within ten days to the mutual insurance asso- 
ciation, which association transfers the complamt to the district 
mining office at Caltanisetta for final decision. 

The same procedure must take place in case of change of the 
employee from one occupation to another, but if the change from one 
wage group to another is due to age no special notice need be given. 
The operator of the mine or his agent, upon complaint made by the 
employee to the insurance association and forwarded to the district 
mmmg office, may be prosecuted for faUure to give the employee the 
required notice of assignment. 

If an accident occurs to a workman before his assignment to a wage 
group has been made, the assignment is made by the insurance 



CHAPTER Vn.— workmen's INSURANCE IN ITALY. 1789 

association, and disagreement as to such assignment is to be settled 
mtiie same way as aU other disagreements as to indemnity to be paid 
ci«S'' ^{^^^^^^^^^^^-de must be given to the insurance asso: 
ciation The same requirements are apphcable to contractors and to 
subcontractors employing helpers. If at the time of an accident the 
notice to the association is overdue, or if the notice furnished omitted 
to give essential information in relation to the workmen^s wages or 
contamed false statements relative thereto, the association may 
recover the amount of compensation from the employer If the 
salary stated to the association is lower than that'^sta ed to he 
employee, only the difference of the compensation based upon the 
two wage figures is recoverable. ^ 

sisrSrnf'^rrr^™''-^^^! ""^'^^^^ ^^ *^^^ association con- 
sist mamly of the tax upon sulphur as estabhshed by the law of 

July 11, 1904; in addition to this there are the initiatio"^ fees of the 
members, amounting to 4 per cent of their amiual wage expense 

7^1r7T: '" ^T^,^-^^^^ --k> -enues ffom tEe ^: 
vestment of the reserve funds, and miscellaneous income The 
normal rate of taxes is established by the law; the specidL^essmeit 
for nonproductive work is determined at 5 per Lt of tC^ ^ 
expense, and may vary in accordance with the TriatTons of t^^^^^^ 
nJ fL T^^ organization of the association three funds !^e 
provided for: An operating fund, tlie ordinary reserve or T^LZl 
fund, and the extraordinary reserve fund Tl.^ «o^ guarantee 
fund is forced fron. the initiUT: a^S pe^LTdZLrr^ 
the other income, which deduction is continued untU Uie rSerrTk 

of ad^?n ; T'T T"^' ^"""""^ «f "'« indenmities andTp^se^ 
of administration for the preceding five years Tl,;« .!>c P.*"^?^^ 

contribuW l/,w . •"«« upon lie new membeis who have not 
"oeeariteTerlltS-riett^"" """ »°' 



1790 



REPORT OF THE COMMISSIONER OF LABOR. 



In case of the dissolution of the association, the constitution pro- 
vides for a redistribution of the accumidated reserves among the 
members proportionately to the wages paid as announced to the asso- 
ciation during the whole period of its existence. 

The operating fund is kept either in the Postal Savings Bank or 
in any other savings bank or in the Bank of Sicily, and is subject to 
the order of tlie president, who must himseK, or through tlie vice- 
president or a director, indorse all payments. The temporary benefit 
payments to the injured workmen are made by members of the 
association, who are subsequently reimbursed. 

Administration. — The organization and mode of operation of the 
insurance association is regulated by its constitution. {^) Briefly, 
this organization is as follows: The association is governed by the 
general assembly of members, meeting twice a year regularly and in 
extraordinary meeting whenever necessary, and its officers, as fol- 
lows: An administrative council, an executive office, an accident 
prevention committee, so called, auditors, and a board of arbitration. 

The membership of the association consists of the mine operators 
who are employers of labor. Under certain regulations the owners 
of mines who do not operate their mines may hold memb(».rship in the 
association. In the general meetings of the association the members 
have a voting power corresponding to the number of employees, 1 
vote up to 25 employees, 1 additional vote for each additional 25 
employees, but not over 100 votes to 1 person, though the number 
of employees is computed by assuming 1 employee for every 500 
lire ($96.50) of annual wages paid. Members may be represented by 
proxies, but no member of the administrative council is allowed to 
act as the agent of any other member of the association. 

The administrative council consists of ten members, elected for 
two years, one-half of the number being elected annually. The 
council has the general powers given to a board of directors, subject 
to the control of the general assembly. The actual executive work 
is done by the director, who is at the head of the executive office. 
He is elected by the assembly for a probationary period of two years, 
after which he has security of tenure an«l can be removed for cause 
only by a general meeting at which are registered three-fourths of 
all voting power. He supervises all the work except that referring 
to prevention of accidents. The director is subject to tiie adminis- 
trative council, to which he refers each case of rejected appUcation 
for compensation. Litigation must be sanctioned by the council. 

The accident prevention committee consists of three members 
elected by the general assembly. The function of this committee is 
to inspect the mines and to issue specific orders and general rules for 

a Bollettino di Notizie sul Credito e suUa Previdenza, 1904, p. 1643. 



CHAPTP^ Vn.— WORKMEN 'S INSURANCE IN ITALY. 1791 

the purpose of promoting the safety of the work. These orders must 
be approved by the council, and may be appealed from to the district 
mining office For the purpose of inspection the committee may 
impress members of the association for a short time, and must pay 
them the cost of subsistence and traveling expenses. 

The three auditors perform the usual functions of an auditing 
committee, and a board of five arbiters elected annuaUy by the 
general meeting hears all controversies between the association and 
Its members referred to it for informal consideration 

Under penalty of a fine a member is required to accept any office 
to which he IS elected, unless he is excused for cause by the adminis- 
trative council, and for his services is entitled to traveling expenses 
and to a per diem allowance. f^^^s 

Government Control of Administration. -A few changes were 
introduced m the methods of administration of the a^ociation by the 

Zrt ^ • t? ^""'P''" '^ strengthening the government control 
over its affairs. The governor is authorized to appoint a government 
representative on the administrative council of the association; aTa 
special provision authorizes the ministry to transfer the entire admin- 
istration mto the hands of a government commissioner, if the council 
ceases to exercise its function or exercises it irregularly. In such 
cases the commissioner remains in charge until the general assembly 
elects a new council. It was explained that some such provision w^ 
needed on the statute books to insure continuity of service of Z 
association against any malice on the part of the board of directo^ 
i- 'TT'^^^'' ^^' "" '^' P^^^^ «f '^^ president and of the 
assembly. He is to resign as soon as a council has been selected 
The remuneration of the commissioner is to be deternTed by the 
minister, but must not exceed 25 lire ($4.83) per day ^ 

tionT'T'^^^^' ^"^'" compulsory mutual insurance associa- 
tion has been m operation such a short time that little staTtical 
mformat,on concerning it is available; but in the following WoZSl 

sation paid for such accidents are given for 1899 to 1905, inclusive 
1. e. a continuous period of seven years of the application ^f SieS 
dent compensation law, for from January i, l899^o Sber 1904 
Je sulphur mme operators were insured ahnost altogether wi^h th^ 
Naional Accident Insurance Institution. Only the kst lineTn these 

Dectb^TTl' 19ol' '7 ''; !f-"^^^' P^™^' ^^^^^- 1' l^ol "o 
dS and tl ' r ^"^ ^^'' <^ompulsory mutual insurance asso- 

tbuous «nH '^'^,P^™^^^ «^.^^ comparisons. The tables show a con- 

i^^of th A7 r'"''' "^ '^ "^^^^^"' '^'^ "^i<^^ ---- the forma- 
s owed tlnT ""^ ^".'"'^ association did not stop, although it 
Slowed down the pace. The rate in 190^ was 126 per thousand- in 



1792 



BEPOBT OF THE COMMISSIONER OF LABOR. 



1904 it was 143.2 per thousand for nine months, or 190.9 per thousand 
per annum; and in 1904-5 it rose to 254 per thousand for fifteen 
months, or 203.2 per thousand per annum. What the rate is under 
the appHcation of the new law of July, 1907, it is impossible to tell, 
since no data are available. As might be expected, the increase is 
not manifested in the number of grave accidents. In 1900 the rate 
per thousand of accidents resulting in death or j)ermanent disability 
was 8.1, in 1904 it was 9.3, and in 1905 it was 8.0, while the rate 
of cases of temporary disability increased from 74.3 per thousand in 
1900 to 181.6 in 1904 and to 195.2 in 1905. It is also shown that the 
total amount of compensation increased materially, though to a less 
degree, because the increase of the accidents was mainly in the tem- 
porary disability group. 

NUMBER OF ACCIDENTS IN SICILIAN SULPHUR MINES AND RATE PER 1,000 

EMPLOYEES, 1899 TO 1905. 

[Source: Bollettino di Notizie sul Credito e sulla Previdenza, 1908, Vol. XXVI.] 



Year. 



1899 
1900 
1901 
1902 
1903 
1904 
1905 



Em- 
ployees. 


Wages 1 
paid. 


38,208 
38,044 
38,901 
37,789 
37,341 
35,395 


$3,424,635 
3,488,810 
3,588, US 
3,455, 5<)1 
3,495,840 

2,569,414 



Accidents. 



Resulting in — 



Death 
or per- 
manent 
disa- 
bility. 



152 
308 
255 
263 
307 
248 
C397 



Tem- 

I)orary 

disa- 

bUity. 



2,393 
2,825 
3,924 
4,875 
4,397 
4,820 
c9,056 



Total. 



2,545 
3,133 
4,179 
5,138 
4,704 
a5,068 
^y,453 



Accidents per 1,000 
employees. 



Resulting in— 



Death 
or per- 
manent 
disa- 
bUity. 



4.0 
8.1 
6.5 
7.0 
8.2 
O7.0 
clO.O 



Tem- 
porary 

disa- 
bUity. 



62.6 

74.3 

100.9 

129.0 

117.8 

o 136. 2 

c 244.0 



Total. 



66.6 

82.4 

107.4 

136.0 

126.0 

143.J 

c 254.0 



o Nine months of the operation of the national insurance institution. 

b Not reported. 

c Fifteen months of the operation of the Sicilian compulsory mutual insurance association. 

TOTAL AND AVERAGE COMPENSATION PAID FOR ACCIDENTS TO WORKMEN IN 

SICILIAN SULPHUR MINES. 

[Source: Bolletthio di Notizie sul Credito e sulla Previdenza, 1908, Vol. XXVI.J 



Year. 



1899 
1900 
1901 
1902 
1903 
1904 
1905 



Total com- 
pensation 
paid 



156,520.90 

85,960.19 

108,283.45 

101,592.01 

128,272.15 

122,806.09 

6113.259. 76 



Average compensation. 



Per case resulting In- 



Death. 



$467.00 
508.00 
594.00 
575.00 
599.00 
a 527. 00 
t> 579. 00 



Permanent 
disability. 



$163. 75 
251.09 
190.28 
202. 45 
2t)l. 72 
« 348. 56 
t> 232. 57 



Temporary 
disability. 



$3.93 
3.43 
4.01 
3.96 
4.69 
4.95 
J>4.38 



Per case, 
all cases. 



$22.21 
27.44 
25.91 
19.77 
27.27 
24.23 
bl7.27 



a Nine months of the operations of the national insurance institution, 

b Fifteen months of the operations of the Sicilian compulsory mutu»il insurance association. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1793 

COMPULSORY ASSOCIATION FOR INSURANCE OF SEAMEN. 

The second compulsory mutual insurance association was ordered 
by royal decree of December 14, 1905, approving the constitution of 
this association after the preliminary steps required by the law of 
January 31, 1904, and the regulations of March 13, 1904, had been 
taken. The decree ordered the association to begin operations on 
August 1, 1906, under the official title of the Obligatory Southern 
Maritime Association for Insurance of Seamen against Trade Acci- 
dents (Sinddcato OUigatorio Marittimo Meridionale per V Assicurazione 
degli Infortuni sul Lavoro delta Gente di Mare). It embraces the equip- 
pers and the owners of ships belonging to the shipping districts of 
Naples, Gaeta, Castellammare di Stabia, Pizzo, Reggio di Calabria, 
Taranto, and Bari, with headquarters at Naples. 

In all its essentials the constitution of tliis association follows that 
of the sulphur mine association, providing the same internal organiza- 
tion of administration and of the finances, except that in levying the 
contributions upon its members it follows the general law of 1904, 
which permits the general meeting to establish the rate annually. 

OTHER ACCIDENT INSURANCE INSTITUTIONS. 

As was explained at some length in the general discussion of the 
law and its application, in addition to the National Accident Insur- 
ance Institution and the compulsory mutual associations, accident 
insurance may be provided by the following three groups of institu- 
tions: (1) Private (commercial) insurance companies; (2) voluntary 
mutual associations; and (3) private funds, either cooperative or 
individual. These will be treated very briefly, especially in view of 
the meager data available. 

PRIVATE INSURANCE COMPANIES. 

The essential difference between Italy and Germany or Austria and 
some other European countries hes in the permission to private 
insurance companies to enter the field of accident insurance. While 
the ParUament did not see its way to exclude them, it felt the neces- 
sity of subjecting their activities to strict supervision and control, 
so as to protect the interests of the insuring employers as well as 
those of the insured employees. 

Private insurance companies desiring to write accident insurance 
under this law must obtain authorization from the ministry. Writing 
accident msurance without such specific authorization is punishable 
by a fine up to 1,000 Hre ($193) for each contract, and the insured 
employer has the right of action for any damages sustained. 

Such authorization must be asked for in written petition, accom- 
panied by the hst of premium rates and a sample poHcy. Variations 



1794 



REPORT OP THE COMMISSIONER OF LABOR. 



from the authorized form of policy are not permitted and are punish- 
able by a fine of from 100 to 5,000 lire ($19.30 to $965) and, if repeated, 
may lead to cancellation of the authorization. Changes in prc^mium 
or in conditions of policy require special permission of the ministry. 
The same requirements in regard to monthly reports and a register of 
insurance apply to the private insurance companies as to the national 
insurance institution. The accident msurance business must be kept 
entirely separate from all other business of the company. 

A guarantee fund is required from the private insurance companies 
which at the end of the year must amount to two-thirds of the pre- 
miums received during that year, with a minimum of 200,000 lire 
($38,600). When the guarantee fund falls below the required limit 
and is not replenished within the specified time, the authorization ia 
considered canceled and the employers must, witliin fifteen days, 
provide for insurance in some other way. 

The great importance ascribed to the guarantee funds is shown by 
the numerous regulations concerning them. The guarantee funds 
must be deposited with the Bank of Deposits and Loans in the form 
of state or guaranteed securities, according to the market value. 
The valuation must be reviewed each six months, and in case of 
depreciation of the securities they must be brought up to the required 
amount. They must also be adjusted every six months to the changes 
in the volume of operation, and when an increase of the fund ia 
necessary it must be effected within fifteen days under penalty of a 
fine up to 50 lire ($9.65) per day for failure to comply with the require- 
ment. In case of reduction of the number of persons insured, the 
administration of the insurance company may petition the ministry 
for permission to refund the difference, and sucli refunding may be 
accomphshed by the bank upon order of the minister. In case of 
the discontinuance of a fund or association, such refunding is not 
made unless it is shown that all obhgations of the company have 
been met. If the guarantee fund has been impaired by payment of 
compensation, it must be replenished within one month under penalty 
of cancellation of the authorization. 

The administration of each private insurance company must fur- 
nish to the ministry monthly reports of the status and changes of 
insurance. The annual statements of accidents and compensation 
must also be pubhshed, and for this purpose a register of all accidents 
must be carried, giving information of estabUshments, time and place 
of accidents, their causes, all necessary information in regard to the 
injured, the injury, and the compensation. 

All accident insurance companies are subject to regular examina- 
tions by the Ministry of Agriculture, Commerce, and Industry. 

Notwithstanding the rigorous demands of the laws and regula- 
tions concerning reports from the private insurance companies, the 



^ 






CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1795 

statistical information concerning their operation is very scanty and 
fragmentary. The organization of these companies has been already 
referred to m the chapter devoted to the general application of Ihe 
law. Unfortunately neither the number of persons insured nor the 
number of persons compensated is available, so that a comparison 
must be made upon the respective amounts of premiums received 
and of compensation paid. The comparison is not unfavorable 
smce It shows an increase in the share of premiums distributed as 
compensation from 73.8 per cent in 1902 to 87.1 per cent in 1906. 

AMOUNT OF PREMIUMS RECEIVED AND OF COMPENSATION PAID BY PRIVATE INSFR 
ANCE ASSOCIATIONS IN ITALY, BY YEARS, 1901 TO 1906 ^" 

[Source: BoUettino di Notizie s.U Credito e sulla Previdenza. August, 1906, and September, 1908.] 



Year. 



1901 
1902 
1903 
1904 
1905 
1906 



Premiums 
received. 



$567,825 

646,715 

601,527 

1,129,285 

1,431,049 

1,637,595 



Compensation paid. 



Amount. 



Percent 
of pre- 
miums. 



S460,414 


81.1 


477,120 


73.8 


459.044 


76.3 


810,553 


71.8 


1.146,369 


80.1 


1,426,456 


87.1 



employers' voluntary motual associations. 

It was the avowed intention of the law to stimulate mutual accident 
msurance among employers by the formation of mutual associations 
accordmg to the German type. Such mutual associations may be 
organized by employers who together employ at least 4,000 persons 
whether m the same line or in different lines of industry. The organi- 
zation of each association requires the autliorization of the Govern- 
ment, and m addition there are stringent regulations concerning 
control, accountancy, and guarantee in order that the employees 
insured in these mutual associations may receive protection equal to 
that given to persons insured in the National Accident Insurance 
institution or m private insurance companies. 

Employers' mutual associations must be organized in writing, the 
articles of mcorporation to contain a list of members and establish- 
ments included in the association; also evidence of the deposit of the 
required guarantee fund and of the approval of the constitution bv 
aU the employers who intend to join the association, and, finall^ 
evidence of payment of half the annual insurance premiums which 
the national insurance institution would require for insurance of aU 
the estabhshments in the association, this initial payment to serve as 
a fund to begin the operations of the association. 

The constitution of the association must contain the usual regula- 
tions as to the constituency, the meetings, the administration, and 






i I 



hill 



1'"^^ 



1796 



REPORT OF THE COMMISSIONER OF LABOR. 



the financial operations, such as the methods uf distribution of the 
employers among the risk classes, methods of settling disputes within 
the association, surveillance over the establishments belonging to the 
association, conditions of liquidation of the association, amendments 
to the constitution, etc. 

The articles of incorporation and the constitution must be sent to 
the ministry for approval or amendment, with all the necessary docu- 
ments, such as evidence of the payment of the required guarantee 
fund, a statement from the national institution as to the amount of 
insurance premiums which the association employers would have to 
pay, and a list of members, with numbers of workmen to be biaured. 
With the final approval of the constitution by the ministry the asso- 
ciation is legally organized. The expenditiu-es of the association are 
covered by means of annual assessments upon the membership, the 
amount of the assessments being based upon the expenditures for 
the preceding year. 

All these mutual associations which are autliorized to act aa sub- 
stitutes for regular insurance companies must guarantee a scale of 
compensation which is in no particular inferior to that estabhshed by 
the law, and to assure the solvency and abihty of the associations to 
meet the obligations assumed they are required to place guarantee 
funds with the Bank of Deposits and Loans, m accordance with the 
regulations of the minister. 

The requirements concerning these guarantee fimds contained in 
the law and the regulations are very strict, sin(;e they are the only 
protection of the injured workman or his family against a dishonest 
or mismanaged employers' mutual insurance association. 

For the employers' mutual accident insurance associations the 
guarantee fund must equal 10 lire ($1.93) per insured employee, but 
not over 250,000 lire ($48,250). In addition, a further guarantee is 
given by the provision that when an association is unable to meet its 
obhgations for payment of compensation the habihty reverts to the 
person responsible for the insiu-ance, i. e., the employer. 

The regulations concerning the guarantee funds of the private 
insurance companies mentioned above also ap])ly to the guarantee 
funds of the mutual insurance associations. 

The formation of voluntary mutual employers' associations pro- 
ceeded but slowly after the enactment of the first law, in 1898. The 
first one to organize was the Sindacato Subalpino, in Turin, on Novem- 
ber 30, 1898, with over 1,000 employers and some 40,000 employees in 
various branches of industry. The mining employers' mutual asso- 
ciation in Iglesias was authorized on March 31, 1899, with some 15 
employers and some 15,000 employees. These were the representa- 
tives of two different types of mutual insurance associations, the one 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1797 

consistmg Of a few large employers in one definite industry and the 
other of a large number of small employers in many differen7branches 
IVo more associations were formed early in 1900, the Syndicate 
League m Genoa and the Association for Emp^ers on Publ^ 
Works (Szndacatofra Impresan dVpere PubUiche), in Florence both 
consisting of several hundred employer, and from five to T^hLand 

rfir J-;!"" "■"• -•'^ ">" -»-"'>" *- *• »=« 

..frr l^^"" ^^^ formation of voluntary mutual associations pro- 

tions tit: "f ^ r" ''^'^ ^^^" ^'^'^'^ ^h^ compulsory assod" 
tions, three voluntary ones were formed in 1904-for employment 
m naval ports, with headquarters in Genoa, April 5; f7sI2Tn 
Genoa, Apnl 15; and Sideros, for miscellaneous^du; tries G^oa' 

the Cisalpmo m Mdan December 20; and for miscellaneous indus^ 
tnes and buildmg trades, Genoa, December 21; and two in mel 

i'tne;' ' ""'^^ '' '"' ^"^ ^ ^^^^^' ^^^^^ ^- miscelllneous 

mtZllf,?^^^^^ '^-^^nce^ since from 

Se thi .. . f ""T '' '^ '^'^'^ P^^^"^^ ^^^^^^^^^ 150 per cent. 

c^on to ZJ! '^'"'^'^ P"'^^ "^^^^ ^^^ ^^' ^^tual asso- 

ciation to another, in view of the differences in the trade risks of 

mdustnes covered, the relation between the total amolt oTcor^- 

pensation paid and the premium seems, on the whole, to be a f avorSe 

one, mdicatmg a moderate administrative expense. 

0™ro.S O. --..KS^^VO.^^^^^^^^^^^^ ,.3UHANC. .SSOCIATIOKS 

r8oun.e:BoUettlnodiNotiziesul Credito e sulla Previdenza, August, 1906, and September, 1908.] 



Year. 



Number of— 



Employ- 
ers. 



1901 
1902 
1903 
1904 
1905 
1906 



(«) 

(«) 

1,689 

2,523 

2,893 

3,255 



Employ- 
ees 
Insured. 



Amount of— 



Wages 
Insured. 



(«) 

62, 793 

83,191 

109, 687 

152,587 



16,037,116 
6,861,861 
6,985,353 
11,273,337 
16,220,045 
21,278,521 



Pre- 
miums 
received. 



Comjpen- 
sation 
paid. 



Average premium 
per- 



Average indemnity 
per— 



«51,840 
61,928 
66,854 
283,657 
464,943 
627,292 



943,313 
44,552 
53,878 
187, 783 
332,365 
512, 539 



Insm^ 

em- 
ployee. 



(«) 

(*) 

11.06 
.3.41 
4,24 
4.11 



$1,000 of 

wages 
Insured. 



$8.59 
9.02 
9.57 
25.16 
28.66 
29.48 



$1,000 of I $1,000 of 

wages premium 

Insured, i received. 



$7.17 
&49 
7.71 
ia66 
20.49 
24.06 



$836 
719 
806 
662 
715 
817 



o Not reported. 



PRIVATE AND COOPERATIVE FUNDS. 

miflrS ^'^'^^',^J^fJ?«^«f ^^ individual establishment (cassa 
prtvata) or of several estabbshments combined {cussa comorzude) 
represent a transition from the principle of insurance toSf of 



1 1 



1798 



BEPOET OF THE COMMISSIONER OP LABOR. 



compensation by the incUvidual employer, although a private fund 
which IS supported by a combination of several employers closely ap- 
proaches an employers' mutual accident insurance association. The 
permission to private employers to substitute a fund for the obhgation 
of insurance was mainly due to the desire to preserve such funds 
where they abeady existed and also to provide for comparatively 
large employers, who could ascertain in advance with considerable 
accuracy the probable cost of accident comi)en&ation. As in the case 
of mutual associations, private funds require authorization, must fur- 
nish guaranties, and are subject to government control. 

A private fund may be oi^anized either by an individual estabhsh- 
ment or by several estabUshments in the same industry or in the same 
locality. The authorization of the ministry is necessary, and such 
authorization is granted upon petition, which must give all necessary 
information as to the estabhshments, together with a statement from 
the national insurance institution as to the aimual amount of insurance 
premiums which would be required to purchase insurance for the risk, 
and evidence of having comphed with the requirements as to the 
guaranty. The private funds are governed by their respective con- 
stitutions, which must state the scale of compensations paid. This 
scale must not be lower than that prescribed by the law. 

When the private fund is organized by se^ eral establishments joined 
for that purpose, the constitutions must state the perio«l for which 
such union is affected, methods of determinmg the coefficient of risk 
of each establishment and the contribution of each establishment, 
conditions for admission of other establisliments, provision for col- 
lective responsibihty, methods of amending the constitution, and 
Uquidatmg the fund if necessary. The ministry may mtroduce 
changes in the constitution of such funds with the approval of the 
council of state and publish them as royal decrees. 

For the private funds the guarantee fund must not be less than five 
times the insurance premiums in accordance with the rates of the 
National Accident Insurance Institution, if the membershif) does not 
exceed 2,000, and three times the insurance premium but not less than 
40,000 lire ($7,720) for the largest funds. The same conditions rela- 
tive to the management of the guarantee fund — concerning dissolu- 
tion, reinsurance, examination of accounts, etc—which have been 
given in connection with the mutual associations, also ai)ply to the 
private funds. 

Three cooperative funds were authorized in 1899, one in 1901, three 
m 1904, two in 1906, and one in 1907; one of these suspended opera- 
tions in 1905 and one in 1906. At the end of 1906 there were known 
to exist seven such cooperative funds. One of these covered nearly 
20,000 employees, two about 6,000 each, one over 2,000; the three 
remaining protected less than a thousand employees each. 



] 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1799 

OPERATIONS OF COOPERATIVE INSURANCE FUNDS OF ITALY. 1901 TO 1906. 
[Source: BoUettino di Notizie sul Credito e sulla Previden^a, August, 1906. and September. 1908.] - 



Year. 



Number of— 



1901 

1902 

1903 

1904 

1905 

1906 



Employ- 
ers. 



(«) 

(«) 
509 
805 
994 

1,225 



Employ- 
ees 
Insured. 



Amoimt of — 



(«) 

18,539 
24,734 
28,346 
35,662 



Wages 
Insured. 



$605,556 

583,329 

579, 216 

1,826,369 

2,319,157 

2,813,982 



Pre- 
miums 
received. 



''$6,071 
17,963 
7,813 
20,487 
23,233 
29,453 



Compen- 
sation 
paid. 



Average premiiun 
per — 



Average compen- 
sation per — 



$3,214 
3,919 
3.495 
5.304 
8.343 

14.992 



Insured 

em- 
ployee. 



$a42 
.83 
.82 
.83 



$1,000 of 

wages 

insured. 



$iao3 

3a 79 
13.49 
11.22 

iao2 

ia47 



$1,000 Of 

wages 
insured. 



* Not Including 1 association not reporting premiums received. 



$1,000 of 
premiiun 
received. 



$5.31 


^$52. 94 


6.72 


21.82 


6.03 


44.73 


2.90 


25.89 


3.60 


35.91 


5.33 


5a 90 



a Not reported. 



Eight private funds for individual establishments qualified in 1899 
and 2 „. 1900. In 1903, 1904, and 1905, 11 nxore lere organic 

TuLV^""^' '° u'^'^' ""**^'' manufacturing establishment Tn 
lunn, had a membership of 3,600 and 1 of 2,800. Three of them are 
organized m connection with establishments employing from 1,000 to 
2,000 persons, and 9 m connection with establishments employing 
ewer than 1,000 persons each. It will be umiecessary to ^CZt 
the detailed figures concerning each of the twenty or morf private 
funds existing in Italy at the end of 1906. The totll data hav'^Tea 
given m connection with the general discussion of the results of the 
operation of the accident insurance law. 

PBOPOSED BEFOBKS. 

The rapid increase in the number of accidents and in the num- 

cbc£ raTtht'L • "*? T""* T^^ '^' ^^^^°" ^ administrative 
nnfrff . ^ administration of the law, notwithstanding the vari- 
ous efforts at reform, was lax and open to criticism. As earlv as 
903, dumig the parliamentaiy debates preceding the adoption of 
the amendatory act of June 29, 1903, both chambe,^ passed resolu 
tions requesting the Government to prepare legislative'^pTposaTst; 
the establishment of special tribunals for the adjudication of actions 
ammg under this law and for the sunplification of the judicial ir^ 
cedure in such actions. («) ' ""'"*' P'*^ 

In conformity with these resolutions, on May 31, 1905 a commis- 
sion was appomtod for the study of the Question TvTl! commis- 
ftdmittpH that tu^ 1 ^ •• . question, ihe commission 

admitted that the regular tnbunals-accustomed to consider eases 
accordmg to the well-established principles of the conZon law 
were not well adapted to sit in cases arising unde. tris^ecial TcT 
which was based upon a different conception'of the relat ons betweli 

~ "' '^°""" «^^l^^^e «ulla Previdenza, T^O^T^ ' 

07725°— VOL 2— 11 ^20 



mm^- 



1800 



REPORT OF THE COMMISSIONER OF LABOR. 



however, that the ordinary courts had an advantage over special 
tribunals in the general sense of legal rights and the de&iite habits 
of legal reasoning, due to experience and to professional training. 
The commission did not see its way to recommend the organization 
of special tribunals, but admitted that the adjustment of claims 
should not be left entirely to the individual bargaining of both par- 
ties, because the workmen or their dependetit relatives do not have 
the necessary understanding of the correct value of their claims. It 
therefore suggested that in all cases the local administrative officers 
(pretori) act as intermediaries, representing the State and adjusting 
the claims on a basis equitable to both parties; that all decisions of 
the ''pretori" up to 1,500 lire ($289.50) be iinal and without appeal, 
and in such cases where larger sums are concerned the appeals be 
considered by the ordinary courts of appeal; that by appropriate 
administrative decrees attorneys at law be discouraged from inter- 
fering with the administration of the law; and that the fees of attor- 
neys and medical and other experts be regulated by decree. 

This plan, expressed in a draft of a bill published toward the end 
of 1905, came up for discussion in the Superior Council of Labor. In 
the last session of 1905 the council, in view of the serious abuses of 
the law in Rome, instructed the Bureau of Labor in cooperation with 
the General Office of Credit and Provident Institutions to prepare a 
careful report concerning the administration of the law, and this 
report came up for discussion in the first session of the council for 
1907. The suggestion of the commission of 1905 to delegate the 
important judicial powers to the ''pretori" did not meet with the 
approval of the council. It was argued that these administrative 
officers had neither the time nor the necessary medical or technical 
training for the consideration of these claims; that they were not 
free from local influences, and were likely to be more influenced by 
the employers and insurance institutions than by the workmen. As 
to the best substitutes for such administrative intervention, the sug- 
gestions offered embraced special courts, an autonomous central 
insurance office in Rome, and the adaptation of special simplified 
methods of procedure in the ordinary courts. 

A careful study of all these suggestions and of the legislation and 
practice of other European countries formed the basis for a bill for 
the reform of administrative procedure in connection with accident 
insurance, which was introduced on March 13, 1908, by the minis- 
ter of agriculture, industry, and commerce, in the Chamber of 
Deputies. 

The legislative proposal introduced by the ministry is divided into 
two distinct parts. The first deals with the specific problem of dis- 
putes arising under the law and the second aims at a general reform 
of administrative procedure. 



CHAPTER VTI.— workmen's INSURANCE IN ITALY. 1801 

The arguments in favor of special tribunals prevailed. The bill 

ZZT ^rT"'^'" "^ ^P^^^^^ P^^^-^1 - d-tinct commit 

sions for consideration of controversies arising under this law A 

commission IS to be established in the capital of each Province to 
have jurisdiction of that Province. If necessaiy, separate coi^ 
missions may be established by royal decree, upon recoLmendatTn 
of the mmister of agnculture, in separate districts (circondano) with 
jurisdiction over that district, which is then taken out of theTui^X 
tion of the proymcial commission. Thus the effort is to provide aU 
ndustnal localities with commissions conveniently locat^ To that 
there may be no hardship to the poor claimant ' 

Each commission is to consist of three members, the president of 
the local tribunal, the provincial physician, and the local chief eni 
neer, they fumishmg the expert knowledge necessary for the pix)per 
consideration of the claims-law, medicine, and entering ^^ 

th Jn L^r '/'^^'' '^''" 'P""^^^ '"^"^^^ i« ^ be much simpler 
tnan m the regular courts. ""pier 

Minors over 18 years may appear in their own cases, and married 
women do not require the authorization of the husband. AttorSS 
or counsel are not necessary. Proceedings must be oral, as a rule 
Briefs may be filed only by permission of the commission. Witn^l 
^ay be examined by the commission, and in the examinat'oH 
witnesses, as we 1 as m the entire procedure, the legal rules of proct 
dure are not obligatory. s i uies or proce- 

Considerable stress is laid upon the technical features of the case 
the examination of which may be made either by the ent^e conT^ 
sion or by any one of its members delegated for that purpose ™ 
commission or the member delegated may visit the plL of accident 
or any other place necessary to verify the statement of the Sr^ 
employee or any witness. ^jurea 

Thus the commission is given the right and opportunity to inform 
itse f m a most direct manner with all the facts in the Lefo 
addition, It IS given the right to appoint outside medical or t^cLc^ 
experts when necessary, these experts to be assisted by the r^L 
tive members of the commission. The orders of the cLmS^n 
have the force of judicial orders. It may order provisionarp'^^s 
or the deposit of guarantee funds. Its final sentences m\,Ttl2 

rit olTirm: '"""*'"^r' ^* ^'^^^ ^^^ •'^ -^^'i *« *"" -u^ 

or cassation in Kome on a wnt of error only 

The expenditures of the commission are to be charged to a special 
fund of the Mimstry of Agriculture, Industry, and CommerTe to 
which contributions are to be levied upon the NatiSTccTdeit 
Insurance Institution and other insurance institutions Exem^ 
Uon from stamp and registry duties are to be conferred ^ponaU^S 
m connection with the proceedings of these courts 



il 



?f 



1802 



REPORT OF THE COMMISSIONER OP LABOR. 



The last twelve articles of the bill (articles 22 to 33) suggest various 
reforms in the administration of the law, which are almost all directed 
toward increasing the control over the claimants and thus preventing 
the abuse of the law through fraud and malingering. The proposals 
are important as indicating the practical difficulties which necessarily 
must arise in the administration of an accident insurance law unless 
proper methods are early taken for their prevention. One of the 
most troublesome details in such administration, even in cases of 
admitted vahdity, is the proper method of determining the exact 
duration of disability, to exaggerate which there is a frequent tend- 
ency among the injured employees. 

Furthermore, aside from the cases of malingering and of deception 
as to the length of disability, the possible carelessness in taking 
measures necessary for hastening recovery must be taken into 
account, such carelessness being due either to ignorance or to the 
desire to prolong the duration of benefits. 

To meet these difficulties, the bill undertakes to grant to the insur- 
ing institutions the right to exercise medical control over the injured 
person, such control to consist of visits of a physician representing 
the insurance institution. The bill further provides that the injured 
employee shall be subject to the visit of the institution's physician; 
shall appear in proper medical institutions incUcated by the insurance 
institution for the purpose of having a thorough medical examina- 
tion made in order to ascertain the results of the injury, or submit 
to such treatment which, while being without danger, may, in the 
opinion of the insurance institution's physician, relieve the conse- 
quences of the accident. If the employee without good reason 
declines to accede to requests for any of the three enumerated 
measures, his compensation may be partially reduced or altogether 
discontinued. 

While these proposals are mainly directed at the ignorance or 
carelessness of the injured employee, other measures are proposed* 
for the purpose of preventing or detecting fraud and malingering. 
The bill intends to deprive the employee of his right to compensation 
under the law when (1) he has simulated or exaggerated or actually 
aggravated the consequences of the accident, (2) when he has 
returned to work while continuing to receive liis daily allowance, or 
(3) when he has in any other way tried to deceive the employer or the 
insurance institution. 

Finally, the third important object aimed at by the new bill is to 
discourage unnecessary Htigation. The commission which prepared 
the bill recognized that frequently attorneys are responsible for 
fraudulent claims or unnecessary lawsuits, and the measures for 
counteracting these evils are directed partly against the claimants 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1803 

tZ h?^f ^ ""^^^"^ ^^" attorneys or any other intermediaries 
The bill mtends to prohibit any attorney from offering S^seSs 
to the clamiant m such cases. Persons who offer theif o^ se"Ses 

Ld fo^rfi'^^^ T"" ^'"^"^ ^^ ^"^^ intermediariesTre Tbe 
toed for the first offense up to 300 Hre ($57.90) and for a second 

offense up to 2,000 Hre ($386). Officials who, haW receTved^fc^ 
of accidents, give information to intermediari;s so af to eTaWe Them 
ifZ' V"'""'? ''' '" ^' similarly punished. M cont^^^^^^ 
Sh ^^^^^f^^.™^ ^ P-y^ent of services rendered incorectTon 

requiS tfoa^^^^ "^T^ "^^^"^^" ^^ ^^^^^ beneficiaries may be 
required to pay m case of unsuccessful lawsuits. ^ 

r^entative for the e^plo^^l^ otTrXl^r ^'^^ ^"^^ ''^ 

accordance with instr^STJv n in 90T thT "" °r7-^" ^ 
criticism to which the law of T904 1 £ u^Zand ti^ ^'^ 
nence gamed through its administration, uncovetd manv ZZ 
weak pomts requiring corrections «nH ihJ ""^Z^^^^ ""^ly other 
suggested were the folloX TbeTtfr tfi T' ""T'^ "Ganges 
to include all injuries c3' dTmnl **f ""t'"" «^ »««<Ient, so as 

employment onl^ ; Te rraL'o"f"^^3at^^^^^^^^ 
payment of no compensation during the first XJ^^U fA u-^"" 
so as to eliminate the growing numLr of cW^fL JJlltv "^^ 
dents; a more practicable methnH nf ^^f — i or very petty acci- 

apprentices; th'e better reguTatn of 't^^^^^^ "T "' ^'^^ 

sation granted which i-, tn h^v v j ^ revision of compen- 

the moft impoHat tr: propSilTm^So ^^^f " ^'''"''" 
to the IVTflfinTioi A -J i. _^ "1^"^^^ ^ ^^^ limitation of insurance 

iliri^gtTtht "^^^^^^ ^'^^*'*""-' *h-gh withou" 

vate accident fnnlT^ insurance associations and pri- 

I!!!_!!!^;^fg^_f:^g^^^^he measure is directed_ against the writing 



1804 



BEPORT OF THE COMMISSIONEB OF LABOR. 






i| 



1 



I J 

ii 



of accident insurance by private insurance companies, since it was 
shown by investigation that their profits are large and constitute a 
heavy and nonproductive burden upon the industry. 

PROPOSED INSUBANCE FOB AGBICULTTTBAL LABOBEBS. 

One of the questions raised by this parHamentary commission in its 
report was the possibiUty of extending the provisions of the accident 
insurance law to the agricultural laborers, who are much more nu- 
merous than the industrial workers. The conmiLssion expressed its 
general sympathy with the proposal but dismissed it for the present 
time because of practical difficulties. 

Independently of these general governmental efforts at reforming 
the law, the question of accident insurance for agricultural laborers 
has come up in the Italian Parliament and the movement in its favor 
is gradually growing. As early as 1902 the question was seriously 
discussed in the Chamber of Deputies. On January 31, 1907, a bill 
to that effect was introduced in the Senate; and while the bill did not 
accomplish very much, a more carefully prepared bill with an exten- 
sive report was reintroduced on March 20, 1909. C*) 

In connection with the first bill a report was made in which it was 
argued that the conditions of work on land were so different from the 
conditions in the factory or mine that a separate law was preferable to 
an amendment to the old law, simply extending it to the agricultural 
labor. The bill of 1907 (*) imposed upon the owner of the farm, who 
managed it himself or through a hired manager, or the money or share 
tenant, the duty to insure the laborers he employed against industrial 
accidents. The insurance obligation included also the state, provin- 
cial, or communal government bodies owning agricultural land. The 
insurance was to be effected either through the existing insurance insti- 
tutions or through special voluntary agricultural employers' associa- 
tions, which might be made compulsory by the minister. Workmen 
employed in tending agricultural macldnery operated by mechanical 
power remained subject to the old law. The scale of compensations 
proposed was simple and rather crude: 2,500 lire ($482.50) for death 
or total permanent disabiUty and full wages for temporary disabihty. 
The bill also contained a long fist of operations or occupations which 
were to be classified as agricultural, and this included: Plowing, 
sowing, grass mowing, transporting and handUng hay, reaping and 
harvesting, tending stock, trimming trees, gathering, transporting, 
and pressing grapes, rearing silkworms, gathering mulberry leaves, 
fruit gathering, tree planting, cleaning of privies, sewers, irrigation 
ditches, etc., butter and cheese making, and repairing of farm build- 
ings and of agricultural machinery and implements. 

oBollettino dell' Ufficio del Lavoro, Vol. XI, 1909, pp. 700-744. 
6Bollettino dell' Ufficio del Lavoro, Vol. VII, 1907, p. 365. 



CHAPTER VII.—WORKMEn's INSUBANCE IN ITALY. 1805 

During the two years that intervened between the introduction of 
the first and second bOl the question was extensively discussTd by 
many agricultural societies. In a lengthy report accompanX the 
later bill many ca^es were cited of approval of the mtent of th! S 

details of the bdl. For this reason these detaUs were conLiderably 
modified in the latter biU, which presents very pecuHar provisions "^ 
The bdl IS very broad in its intent. It aims to include all agricul- 
tural labor hired for the cultivation of the soil, or any suSry 
occupations necessary in farming, even if for a few days orTou" 
Those branches of agricultural labor which are covered by the ™i 
accident insurance law, such as forestry work, tendmg machinery hT- 
drauhc work levelmg, road making, etc., are left undisturbed when 
ShVvTr . " T f-^r"^^^ ^ independent occupations. But 
farm labor, they are to be treated as such ^ 

for^ar'r'Srtw'"^ '^ '^' ^^" '' '^^' ^'^^^ P^^« '^^ responsibility 
for carrying the msurance upon the owner of the land, and not upon 

the pei^on operating the farm or estate. But while the civi? respC 

Bibihty IS mtended to rest entirely upon the owner of the land tenant 

are required to contribute one-half of the premium if they rlt mor^ 

han 4 hectares (9.9 acres), and one-third if renting from 1 to 4 WarS 

(2.5 to 9.9 acres). Tenants renting less than 1 hectare (2 5 acr^ a^ 

not expected to contribute any share of the premiums. ^ 

;^\ T^'''''^ ""^ insurance obtain even for smaU holdings culti 
yated by the members of the family, whether the head o t"f f a^ 
^tenant or propnetor. In the latter case the head of the f amilyt 
held responsible for the insurance obUgation ^ 

2 S^oSTeTsS^^^^^^^ asinthefirstbiU; it requires 

1,000 lire ($193) If smgle. In ca^e of total permanent disabihty the 
compensation is 2,500 hre ($482.50), whether single or married For 
temporary disability there is a daily allowance o1 1 lirT (^3 cent'? 
or smgle persons and 1.50 lire (29 cents) for married persons No 
account IS taken of differences in earning capacity, age^tc WhUe 

thetw ni ?' ^' ^'''"' ^™"^"^ disabihty are'r'efeired To m 
the law, no scale of compensation is provided for those, and no regu- 

IcddTnt? %r T"'"^ '^^ distribution of compensation in fa^l 
accidents. Th s is the more remarkable, as the existing Itahan laws 
are very exphcit concerning these problems 

The modern Itahan tendencies concerning accident insurance are 
seen m the provisions of the biU, granting to the NationaHcddent 
Insurance Institution the exclusive right to insurance, except that 
mutual associations may be formed; and the minister ;f agriculture 



1806 



EEPORT OF THE COMMISSIONER OF LABOR. 



li 



is given the right to organize compulsory mutual associations when- 
ever he may thmk any necessary. 

Perhaps the most novel features of the bUl proposed is the method 
of assessmg the cost of insurance. It is base.l not on the number of 
pereons employed or the wage expenses, but on the acreage of the 
and. A considerable advantage of simpUcity may be claimed for 
this plan. For the purposes of each assessment the land is divided 
mto six classes: (1) Irrigated land; (2) dry land used for grass 
hay hemp flax, vegetables, and fruit; (3) land cultivated for one- 
third, and left for grazing for two-thirds; (4) land under extensive 
cultivation for vegetables; (5) wood lots; and (6) alpine pasture 
lands. It is stiU more remarkable, both in view of the very unsatis- 
factory conditions of ItaUan accident statistics in general, and sta- 
tistics of accidents m agriculture in particular, that the law under- 
takes to estabUsh the rate of accident insurance premiums for each 
grade of land— namely, 1.10 lire per hectare (8.6 cents per acre) for 
land of groups 1 and 4, 0.90 lira per hectare (7 cents per acre) for land 
of second group, 0.70 Ura (5 cents per acre) for the third group, 0.40 Ura 
(3 cents per acre) for the wood lots, and 0.20 lira (1.5 cents per acre) 
for the alpme pasture lands. For estates extending over 20 000 
hectares (49,420 acres) these rates are reduced by one-third, and if 
extending over 50,000 hectares (123,550 acres), by one-half. Pro- 
vision IS made m the bill for revision of these rates after two years of 
experience. 

The number of agricultural laborers in Italy is so much larger than 
that of mdustnal employees that the problem is one of very great 
importance. According to the census of 1901, persons employed in 
agriculture numbered over nine and a half miUions as against less 
than 4,000,000 employed in industry. 

STATISTICS OF IHDTTSTBIAl ACCIDENTS. 

The prmcipal statistics of industrial accidents were given in discuss- 
ing the general application of the law (pages 1 736 to 1 744) In addi- 
tion to the grand totals of the number of accidents, detaCed accident 
statistics contam very important material for the understanding not 
only of the problem of accident insurance, but also of industrial acci- 
dents in general. WhUe Italian accident statistics are exceedingly 
fragmentary, they nevertheless contain much that is valuable and 
are therefore reproduced here. 

Both government institutions concerned with the problem of work- 
men's msurance have at different times taken up the question of 
mdustnal accident statistics, namely, tlie Bureau of Credit and Sav- 
ings Institutions (Divisione Credito e Previderiza, at present Divi- 
zwne Gen^ale del Credito e deUa Previdenza), and the Bureau of 
Labor ( Vfficvo del Lavoro), both in the Ministrv of Agriculture Indus- 



i 



CHAPTEB VII.-W0BKMEN'8 INSURANCE IN ITALY 1807 

SpTe^srh^ii^tTontcir:^^^^^^^^ 

K4renrrse^-?SdTr^^^ 

in th/analy^SfoUotr^LXn^^^^^^^^^ f^^' 

complete, includW 57 617 nnf nf aT'^an ^^^^^^^^ ^^ much more 

by in'dustries, caul rf:,;l:;SSSu '' ''Zm ^'''r 
statistics have been publish;d by this bureT Tl, n , ^ ^^"*^^°' 
of Labor, organizederriy in 1904 beg^n to mXi/ /'''° ^"'■"''" 
statistics in July 1904 and altn^r.fif ! ^^ ^ '"^P"'"*^ ""^ accident 

two and one-h Jf ylat^^'u^'l^trr I9T T^^-^^ 
reports covered dpHoHq nf +i.^^l L ^*;^^™^^er, i\)Ob. Its earlier 

year 1905 appealed" the sp^ST907T'd "" 7^°'.* '"' '""^ -*- 
the summerTf 1907 No oth™« . ' **°f ^"^ ^^^ ^^""^ 1^06 in 
when a few data for 4" t^ tit: 7St.r'\rT.''' ''''■ 
January, 1910, the data for Octotr to DlX'tsos '' TV" 
totals for the six months-July to December Ss Tf' u'° 

unfortunately these reports are far from uniJorm' S"*.^"™^^"* 
tion was begun on a very large scale, but sl'te^tenl J he : [" 
sis was materially reduced, the renort fnr- 1 00^1, ^ ^'^^^^' 

than for the last sk month of loTa^d the d«^ HcT'^ "'"P^^' 
very little except totals, so that no Very ^nded ''' '°°*""'°S 
except for the last six months of 190^ *°*'^''' '^ P**^^''''« 

sioIXra^ltsSl^tdit^^^^^^^^^ r ^t '^-' ^'^vi- 

tables concerning the time'h've bJ^SS ''''i^T' ""f- "'''''' 
are mainly those of geographical diS tfth tie oZTT' 
enumerated, and there are also combinationn? indus^rv si "^ 
age; mdustry and cause; and cause, sex, and 1 "' ' ""'* 

sex S'^ndtTonfr ZT^T '"'' "^ ^ '"^^P*^-' ^™-. 
and the reporter ms I li^'tfdL"°-'T^ *""«' «^ ««« 

graphical diisions Z^L^Tefoftir;''' ''''''''''''''' '^ ^- 

iorVoi SytSmS r9S'^;9;5tor ^ '] tr ''j.'^'-^'^- 

1908. Because of absence'ci SaWe UaS^^^^ *° ^^^f ^er, 

in these industries it Iq im,,-.: "m . persons employed 



1808 



REPORT OF THE COMMISSIONER OF LABOR. 



5.7 per cent in 1905, and 6 per cent in 1906. The metal-working in- 
dustry (primarily iron), building and construction, mining, and 
textiles claimed the vast majority of the industrial accidents in 1906, 
over 63 per cent. 

NUMBER OF ACCIDENTS IN SPECIFIED YEARS BY INDUSTRIES, 1902 TO 1908. 

[Source: BoUettino dl Notlzle sul Credlto e suUa Prevldenza, August. 1906, and BoUettino ,leU' Uffiolo del 

Lavoro, March and June, 1905, and March and June. 1907.] ^i"«ui aei 



Industry. 



Agriculture and for- 
estry 

Mining 

Metallurgy 

Bricks, pottery, and 
glassware 

Metal working 

Electric industry 

Woodworking 

Chemicals, etc 

Printing and paper. . 

Textiles 

Leather and other ani- 
mal products 

Clothing 

Food products 

Building and con- 
struction 

Loading and unload- 
ing, lifting, carry- 
ing, etc 

Railroad transporta- 
tion 

Transi)ortation by 
water 

Allothffl' 

Total 



1902. 



July to December, 
1904. 



Male. 



460 
^10,947 

1,917 
13,331 
649 
1,327 
2,592 
1,371 
6,580 

728 

783 

2,759 

9,007 



(a) 

(o) 

(a) 
5,166 



57,617 



890 
/5,892 
\1,944 

1.387 
9,943 

546 
1,345 
2,257 

882 
2,516 

396 

521 

2,334 

7,550 



1,551 

3,423 

490 
1,101 



Fe- 
male. 



44,968 



67 
27 
36 

83 

274 

19 

25 

222 

169 

1,668 

43 

138 

83 

38 



1 

11 

6 
59 



Total. 



2,9(59 



957 
5.919 
1,980 

1,470 
10,217 
565 
1,370 
2,479 
1,051 
4,184 

439 

659 

2,417 

7,588 



1,552 

3,434 

496 
1,160 



1905. 



Male. 



Fe- 
male. 



47,937 



,945 

13,646 

6,157 

4,046 
29,731 
1,775 
3,131 
5,537 
2,071 
6,753 

1,199 
1,017 
5,528 

17,300 



4,356 

7,963 

1,229 
4.073 



117,457 



80 
46 
38 

195 

679 

18 

41 

411 

402 

4,224 

80 
359 
184 

82 



8 

38 

10 
291 



Total. 



7,086 



2.025 

13.692 

6,195 

4,241 
30,310 
1,793 
3,172 
6.948 
2,473 
10,977 

1.279 
1,376 
6,712 

17,382 



4,364 

8,001 

1,239 
4,364 



1906. 



Male. 



124.543 



2,328 
[•18,979 

5,635 
47.330 
(°) 
4,941 
9,410 
2,886 
8,806 

i,n6 

1,053 
7,907 

23,129 



3,874 

10,531 

3,635 
4,438 



Fe- 
male. 



156,598 



61 
97 

264 
618 

(«) 
159 
402 
530 
6,569 

182 
293 
589 

114 



33 
15 

1 

46 



Total. 



July 
to De- 
cem- 
ber, 
1908. 



9,963 



2,379 
19,076 

6,899 

47,948 

{«) 

6,100 

9,812 

3,416 

16,375 

1,898 
1,346 
8,496 

23,243 



8,907 

10,546 

3,636 
4,484 



160,561 



1,120 
6,989 

5,673 
21,389 

(«) 
2,911 
4,911 
1,930 
7,662 

1,213 

826 

5,469 

14,184 



6,431 

8,369 

619 
793 

89,488 



a Not separately reported. 

The causes of accidents for 1902, July to December, 1904, and for 
1905, are shown in the following table. As the data were taken from 
two distinct sources, with somewhat different methods of classifying 
causes, they are not strictly comparable for 1 902 and the two later 
periods. 

The table shows that more than half of ihe industrial accidents 
occurnng m 1904 and in 1905 were caused by hmdshdes, falling bodies 
striking against objects, and faUs; 61.22 per cent of the total number 
of accidents in 1905 being attributed to these causes. 



CHAPTER Vn.-W0RKMEN'S INSURANCE IN ITALY. 

CAUSES OF ACCIDENTS, 1902. JULY TO DECEMBER, 1904, AND 1905 
)Uettlno dl tJftti,in „,i f^^.. .. _ . ^yy^, Ai\u 1905. 



1809 



[Source: BoUettino dl Notkie sul Credlto e sulla PmviHo« a 

Lavoro.lJiSSi? A^H'iZ^'^S^^^^^^ BoUettino deU' Ufficio del 



Causes of accidents, 



Motors 

Power transmi^ion "apparatus' 
tostruments and tools. . 

Working machinery 

Elevators, hoists, cranes', etc ' " 
Boilers and steam fitting 
EjTOlosives... 
Inflammable substances* " 
incandescent metals 

^hSfS ^^•.■*^"o'"-<«ive ^doti^: 
landslides and feUingbodies 
btnkmg against fixe(f or movable objects 
l^g^en movements of the body . .... 

Elwtric condiictoreV. 
Railroad accidents. 

Navigation 

AU other. . 



Total. 




are 
such 



o Not separately reported. 

ing machinery is responsible for large numWrT <.7 ./hus work- 
metal working and textile industrSaniudeTand IntTt^ ''' 
mining and metal working falls in b„iIHi„! a ^ ^^'^ "^ 

mines, etc. buildmg and construction and 



1810 



REPORT OF THE COMMISSIONER OF LABOR. 

NUMBER OF ACCIDENTS IN 1902, JULY TO DECEM 
[Source: BoUettino di Notitie sul Credit© e sulla Previdenza, August. 1906, and 



Mar- 
ginal 
num- 
ber. 



1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 



18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 

30 
31 
32 
33 

34 



35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 

47 
48 
49 
50 

51 



Industry. 



Number of accidents caused by- 



Motors. 



1903. 

Mines and metallurgy 

Bricks, pottery, and glassware 

Metal working 

Chemicals, etc 

Food products .* 

Woodworking 

Textiles 

Leather and other animal products. 

Clothing 

Paper and printing 

Building and construction 

Cars, venicles, etc 

Transportation 

Electrical industry 

Agricultural labor , 

AU other , 



Total. 



JULY TO DECEMBER, 1904. 



Mines and metallurgy 

Bricks, pottery, and glassware 

Metal working , 

Chemicals, etc : . . . 

Food products 

Woodworking 

Leather and other animal products. . 

Clothing 

Paper and printing 

Building and construction 

Loading and unloading, hfting, carry- 
ing, etc. 
Railroad and water transportation... 

Electrical industry 

Agriculture and forestry 

All other 



Total. 



1905. 

Mines and metallurgy 

Bricks, pottery, and glassware 

Metal working 

Chemicals, etc. 

Food products 

Woodworking 

Textiles 

Leather and other animal products. . 

Clothing 

Paper and printing 

Building and construction 

Loading and unloading, lifting, carry- 
ing, etc. 
Railroad and water transportation... 

Electrical industry 

Agriculture and forestry 

Another 



Total. 



Power 
trans- 
mission 
appara- 
tus. 



8 
5 
41 
11 
41 
3 
22 



2 

7 
29 

2 

30 
14 
32 

1 



248 



16 
2 
58 
8 
21 
10 
19 



2 

9 

16 

2 

77 

13 

16 

4 



273 



29 

7 

135 

35 

52 

10 

83 

2 

11 

25 

29 

6 

51 

33 

7 

9 



524 



26 
22 

155 
23 

105 
33 

271 
15 
27 
46 
14 
13 
4 
7 

42 
3 



Work- 
ing ma- 
chin- 
ery. 



806 



29 
12 

135 
26 
64 
23 

171 

6 

19 

33 

13 



142 
100 
2,484 
171 
500 
547 
3,075 
121 
360 
498 

72 
211 

75 

70 
1'28 

57 



Eleva- 
tors, 
hoists, 
cranes, 
etc. 



216 

10 

178 

27 

34 

4 

31 

1 



Boilers 

and 
steam- 
fittings. 



23 



8,611 



14 
6 

40 
2 



593 



181 

81 

1,607 

166 

817 

318 

1,470 

64 

245 

800 

86 

17 

101 

53 
l(i5 



10 

167 

30 

44 

2 
13 

9 



776 



14 

22 

10 

1 

13 
2 
5 
4 
5 
2 
7 



Explo- 
sives. 



83 
2 
2 

13 



Com- 
busti- 
bles, 
corro- 
sives, 
gases, 
etc. 



117 



41 

2 

87 

11 

13 

4 

17 

2 



5,278 



36 
17 

200 
27 
99 
15 

242 
25 
36 
51 
22 
4 

18 
'9 

36 
9 



369 

189 

3,828 

321 

618 

545 

3,443 

160 

3<-.7 

613 

207 

36 

231 
138 
210 
366 



3 
32 
24 

24 
1 
6 
6 



273 



10 

2 

8 

10 

14 

"9 



62 



20 



183 



17 
4 
3 
1 



83 



846 



all, 642 



119 

5 

156 

22 

17 

4 

11 



2 
10 
39 
35 

36 
3 
5 
9 



35 
2 
2 

20 
3 
1 



12 



8 
2 
46 
10 
11 
4 
29 



473 



11 
2 
5 
3 



94 



6 
10 



50 
1 



140 



174 



477 

233 

1,717 

430 

227 

34 

245 

23 

43 

45 

165 

128 

70 

45 

16 

18 



3,916 



504 

110 

980 

317 

197 

30 

138 

18 

21 

40 

172 

10 

120 
25 
18 

47 



2,747 



1,433 

375 

2,959 

794 

362 

73 

294 

38 

48 

57 

438 

44 

276 
93 
41 

180 



7,505 



o This total is not the correct sum of the items; the figures are given as shown in the original rejwrt. 



CHAPTER Vn.— workmen's INSURANCE IN ITALY. 
BER, 1904, AND 1905. BY INDUSTRY AND CAUSE. 
Bollettlno deU' Ufficio del Lavoro, March and June. 1908, and March, 1907.1 



1811 



Number of accidents caused by— 







« 19. 887 


35 


04. 241 


36 


30,310 


37 


5.948 


38 


5.712 


39 


3.172 


40 


10,977 


41 


1,279 


42 


1.376 


43 


2,473 


44 


17.382 


45 


4,364 


46 


9,240 


47 


1.793 


48 


2.025 


49 


4.364 


50 



3,805 0124.543 



ij 



w i 



1812 



REPORT OF THE COMMISSIONER OF LABOR. 



Information concerning the variations in the number of accidents 
by days of the week is available only for the six months, July to 
December, 1904. The actual number of accidents occurring during 
each day of the week is shown by industrial groups in th(i following 
table. 

With the exception of the small number of accidents occurring on 
Sunday, the number of accidents for the different days of the week 
appears to be fairly uniform, but shows a tendency to increase toward 
the end of the week. The relations vary somewhat from industry to 
industry, probably due to local conditions of the industry. 

NUMBER OF ACCIDENTS, BY DAY OF THE WEEK AND BY INDUSTRY, JULY TO 

DECEMBER, 1904. 

[Source: Bollettino dell' Ufflcio del Lavoro, March and June, 1905. Data obtainable only for July to 

December.] 



Industry. 



Aericultm-e and forestry 

MiQlng 

Metal&rgy 

Bricks, pottery, and glassware , 

Metal working , 

Woodworking , 

Chemicals, etc , 

Paper and printing 

Textiles 

Food products 

Bulldmg and construction 

Loading and unloading, lifting, carry- 
ing, etc 

Railroad transportation 

All other 

Total 



, 


■ 


!^umber of accidents on— 






Sun- 


Mon- 


Tues- 


Wed- 


Thurs- 


Fri- 


Satur- 


day. 


day. 


day. 


nesday. 


day. 


day. 


day. 


68 


147 


135 


124 


145 


159 


179 


238 


872 


915 


1,054 


915 


989 


936 


101 


329 


278 


307 


302 


338 


325 


67 


255 


224 


238 


230 


225 


231 


350 


1,631 


1,613 


1,608 


1,618 


1,673 


1,724 


29 


225 


209 


209 


209 


237 


252 


192 


421 


379 


387 


360 


366 


374 


42 


192 


184 


158 


136 


164 


175 


81 


696 


679 


626 


646 


692 


764 


197 


411 


330 


339 


396 


373 


371 


266 


1,205 


1,248 


1.195 


1,117 


1,276 


1,281 


109 


224 


245 


241 


224 


248 


261 


326 


525 


512 


516 


509 


539 


507 


167 


540 


523 


613 


514 


519 


543 


2,233 


7,673 


7,474 


7,615 


7,321 


7,798 


7,923 



Total. 



957 
5,919 
1,980 
1,470 
10,217 
1,370 
2,479 
1,051 
4,184 
2,417 
7,588 

1,552 
3,434 
3,319 



47,937 



The number of accidents occurring on the various days of the week 
are shown by the principal causes in the following table. The increase 
of the frequency toward the end of the week is noticeable in nearly 
aU groups. 

NUMBER OF ACCIDENTS, BY CAUSES AND BY DAY OF THE WEEK, JULY TO 

DECEMBER, 1904. 



[Source: Bollettino dell' Ufficio del Lavoro, March and June, 1905. 

December.) 



Data obtainable only for July to 





Number of accidents on— 




Causes of accidents. 


Sun- 
day. 


Mon- 
day. 


Tues- 
day. 


Wed- 
nesday. 


Thurs- 
day. 


Fri- 
day. 


Satur- 
day. 


Total. 


TnRtmmpnt.s! and t/v^In , . 


131 

179 

72 

398 

442 
241 
336 
434 


619 

887 

205 

1,461 

1,462 

859 

1,160 

1,030 


582 

809 

186 

1,542 

1,497 
773 

1,099 
986 


565 

833 

219 

1,524 

1,476 

755 

1.123 

1,020 


578 

787 

215 

1,511 

1,449 
720 

1,103 
958 


611 

871 

214 

1,677 

1,553 
803 

1,099 
970 


624 

912 

250 

1,562 

1,555 

803 

1,193 

1,024 


3,710 
6,278 
1,361 
9,665 

9,434 
4,954 
7,113 
6,422 


Working machinery 


Incandescent metals 


Landslides and falling bodies 

Striking against fixed or movable 
objecte 


Sudden movements of the body 

Falls 


All other 




Total 


2,233 


7,673 


7,474 


7,615 


7,321 


7,798 


7,923 


47,937 





' 



CHAPTEE VII.— WORKMEN'S INSURANCE IN ITALY 1813 

be explained by several oor.iderZioZ:^^Tl.:::;'Zj^ln 
accidents occurring during the night hou,^ 9 p ' !« fiT 
clearly seen. This i<5 PvXi,,^^ u *u ' P' ' *° " *• ^■' ^ 

night^work. The d ff£cT ' the t""^"'*^ '^''^-^-<^y of 

three periods, 6 to 9^^ ^ " ^ t T^anl t^^Ts^^ ^'^ 

greater than the first because aU work doe, wK ^ T"^'' 

a. rn and greater than the thi?d TcitThe iririS^rf " ' 

s^^^e:: t^:t;^^t\e;etdtto^^^^^ 

e.f ti^n^elL^noT^^^^^^^^ 

period 3 to 6 p. m. to that of 12 to 3 p m. ° St'Xf '''"''' '"^ *^« 



Industry. 



Number of accidents during— 



Hours before 12 m. 



12 to 3, 



Agriculture and forestry. 



Metallurgy. ..'."." 

Bricks, pottery,' and glas^Ware 

Metal working 

Woodworking. 

Chemicals, etc..." 

Paper and printinV 

TextUes.... ^ 

Food products. 

Building and construction " " ' 
L-oadmg and unloadmg. hftl' 

ing, carrying, etc.... ^.' 
Kailroad transportation 
AU other 



Total. 



15 
78 
23 
22 
72 

3 
38 

7 
52 
35 
68 

14 
54 
33 



3 to 6. 



25 

202 

57 

37 

204 

15 

83 

26 

99 

91 

149 

29 
91 
54 



6 to 9. 



141 
981 
280 
265 

1,456 
207 
353 
117 
672 
350 

1,182 

230 
556 
462 



Hours after 12 m. 



9 to 12. 



243 

1,857 
568 
445 

2,983 
423 
704 
322 

1,191 
655 

2,332 

494 
898 
962 



12 to 3. 



132 

1,150 

266 

164 

1,388 

209 

360 

174 

525 

347 

1,005 

218 
475 
439 



3 to 6. 



221 

1,115 
523 
380 

2,921 
369 
636 
302 

1,146 
589 

2,076 

406 

777 
877 



6 to 9. 



514 1,162 I 7,252 |l4,077 | 6,852 |li:iii'i:iS 



124 
275 
171 

95 
881 
113 
186 

79 
397 
209 
496 

98 
339 
223 



9 to 12, 



28 

165 

58 

44 

202 

13 

91 

21 

79 

93 

146 

18 

182 

55 



Time 
un- 
known 



TotaL 



28 
96 
34 
18 
110 
18 
28 

23 

48 
134 



957 
5,919 
1,980 
1,470 
10,217 
1,370 
2,479 
1,051 
4,184 
2,417 
7,588 



45 1,552 

62 3,434 

214 3,319 



1,195 



861 ; 47,937 



of the fluctuatiorarrL'^asTto^'it^ "'T** ^*"^"- ^^^ 
purely accidental in view of t^J explam and may possibly be 
which the table is ^ea^ ' comparatively smaU numbers with 






1814 



REPORT OF THE COMMISSIONER OF LABOR. 



NUMBER OF ACCIDENTS, BY CAUSES AND BY HOUR OF OCCURRENCE, JULY TO 

DECEMBER, 1904. 

[Source: Bollettino dell' Ufficio del Lavoro, March and June, 1905. Data obtainable only for July to 

December.] 



Causes of accidents. 



Instruments and tools 

Working machinery 

Incandescent metals 

Landslides and falling bodies. . 

Striking against fixed or mov- 
able objects 

Sudden movements of the 
body 

Falls 

AU other 

Total 



^iNfMiiM 



Number of accidents during — 



Hours before 12 m. 



12 to 3. 



19 

49 

23 

121 

84 

39 
83 
% 



514 



3 to 6. 



105 

52 

235 

239 

97 
197 
168 



1,162 



6 to 9. 



521 

741 

154 

1,475 

1,459 

810 

1,102 

990 



7,252 



9 to 12. 



1,212 

1,600 

302 

2,881 

2,736 

1,599 
2,011 
1,736 



Hours after 12 m. 



14,077 




681 

1,020 

861 



6,862 



TotaL 



3,710 
5,278 
1,361 
9,665 

9,434 

4,954 
7,113 
6,422 



47,937 



While both sexes show an increase of accident frequency toward 
the end of the week and also toward the close of each working 
period, this rise of frequency is slightly more pronounced in the case 
of the female employees than in that of the male workers. 

NUMBER OF ACCIDENTS, BY SEJC, BY HOUR OF OCCURRENCE. AND BY DAY OF THlfe 

WEEK, JULY TO DECEMBER, 1904. 

[Source: Bollettino dell' Ufficio del Lavoro, March and June, 1905. Data obtainable only for July to 

December.] 

HOUR OF OCCURRENCE. 





Number of accidents during — 




Sooc. 


Hours before 12 m. 


Hours after 12 m. 


Time 
un- 
known. 


Total. 




12 to 3. 


3 to 6. 


6 to 9. 


9 to 12. 


12 to 3. 


3 to 6. 


6 to 9. 


9 to 12. 




Male 


489 
25 


1,118 
44 


6,803 
449 


13,152 
925 


6,461 
391 


11,510 

828 


3,421 
265 


1,170 
25 


844 
17 


44,968 
2,969 


Female 




Total 


514 


1,162 


7,252 


14,077 


6,852 


12.338 


3,686 


1,195 


861 


47,937 





DAY OF THE WEEK. 





Number of accidents on— 




Sex. 


Sunday. 


Monday. 


Tuesday. 


Wednes- 
day. 


Thurs- 
day. 


Friday. 


Satur- 
day. 


Total. 


Male. .J 


2,187 
46 


7,208 
465 


7,014 
460 


7,036 
479 


6,851 
470 


7,297 
501 


7,375 
648 


44,968 


Female 


2,969 






Total 


2,233 


7,673 


7,474 


7,616 


7,321 


7,798 


7,923 


47,937 





CHAPTEB VII.— WORKMEN 'S INSUEANCE IN ITALY. 1815 

The accidents are classified by the nature of the injury for each 
industrial group in the table which follows, and in the second sec- 
tion of the same table are shown the percentage relations which have 
been computed for each industry, on a somewhat less expanded 
classification of injuries. The data are avaUable only for the year 
1902. Wounds, contusions, and fractures are classified together 
because frequently such injuries are combined in one casualty and 
they constitute over nine-tenths of all injuries. Nearly 44 per' cent 
of all mjuries affect the upper extremities and almost 29 per cent 
the fingers alone, the frequency of injuries to the fingers of the right 
and the left hand being *hnost equal. Nearly one-fourth of all 
mjunes affect the lower extremities, so that the wounds, contusions 
and fractures of the extremities claim over two-thirds of all acci- 
dents. Injuries to the trunk are very much less frequent, and are 
mostly located in the chest. The variations in the nature of injuries 
ui the vanous mdustries are considerable. The proportion of injuries 
affectmg the upper extremities rises to nearly three-fourths in the 
clothmg mdustry, and is only about one-third in building and con- 
struction, chemical industries, and the mines and metallumcal estab- 
lishments, where accidents to lower extremities are much more 
frequent than in the clothing industry. The variations are nlamly 
hi"du^r '^'^^'^^'"'^ "^ *^« "**"■■« of operations necessary in each 

A very close relationship exists between the cause of the accident 
and the nature of the injury. The accidents resulting from the 
handhng of tools must necessarily cause injuries very much different 
from those caused by explosives or landslides. This relationship is 
shown in the second table following which gives the figures for 1902- 
basis^^""" '^*'*'°'' "^ ^^ **"^ summarizes the data on a percentage 

Working machinery must frequently injure the upper extremity, 
and particularly the fingers. Nearly two-thirds of all accidenS 
due to this cause led to injuries of fingers, no very great difference 

L tKr m' :'""T *^ '''"^^'' "^ '°^""«^ ^ *!»« riglit hand and 
to the left Next in the frequency of injuries to the fingers follow 

accidents due to motors, to instruments and tools, and to poweZ 

transmission apparatus. Elevators, hoists, cranes, etc., affj^t the 

throH T*'"' f ' *^^*^' ''''''' -^"^ ^'"'^k more frequently thl 
ti^^B other forms of machinery. Boilers and combustLs iLd to 
bums and scalds while the injuries due to explosives are fairS 

e " ?f ^""^T' ^"'^ '""^•'^ ""'^ '">l««^i'»g' Wting. carrying, eto. 



-21 



1816 



M 



it 



BEPOBT OF THE COMMISSIONER OF LABOR. 
NUMBER AND PER CENT OF ACCIDENTS 



FOR WHICH BENEFITS WERE PAID BY THE 
mJMBEB. f ««»«»•• Bollettino dJ Notizle «ul Credito 



Nature of injury. 



Mines 
and met- 
allurgy. 



Accidents in each specified industry. 



Bricks, 
pottery, 
and 
glass- 
ware. 



BURNS, SCALDS, ETC. 

|to|e parts of body,not Includlngeyes 

Several parts of body: 

Not Including eyes 

Includlngeyes....; 

The entire body 



Total. 



WOUNDS, CONTUSIONS, FK ACTUBES, ETC 

Right arm: 

Not Including fingers.. 

Including fingers.. 

Fingers alone.. 



Total. 



Left arm: 

Not Including fingers. 
Including fingers... 
i> Ingers alone . . 



Total. 



Both arms: 

Not Including fingers. 
Mudlng fingers... 
'Ingers alone.. 



Total. 



Right or left leg: 

Not Including toes , „ ««, 

Including toes | 2, 697 

480 



Toes alone. 
Total. 



Both legs: 

Not Including toes. 
Including toes. 
Toes alone.. 



Total. 



Head and neck: 

Not including eyes 
Includlngeyes. 
Eyes alone... 



Total. 



Trunk: 

Chest 

Back......: 

Shoulders 

Ribs ...■.'.■.■"■■ 

Abdomen 

Inguinal region 

Other parts of trunk . 



Total 

Other parts and several narte 

enumerated ^"^ 

The whole body .".'.'." .".'.".' 

'^tSfesTete.'!!'.!*:°*!^^°°«' ^'^ 







i 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1817 

VARIOUS INSURANCE INSTITUTIONS, BY NATURE OF INJURY AND BY INDUSTRY 1W2. 
e sulla Previdenza, August, 1906.] ' 

NUMBER. 




i 



i4 



1818 



BEPOET OF THE COMMISSIONEE OE I.ABOH. 



NUMBEB-Concluded. INDUSTRY, 




Both arms: 

Fingers alone.... 
All other 



Tot^ upper extremities: 
^ ingers alone. 



Lower extremities: 
Toes alone 
AU other 



Head and neck; 
Eyes alone 
All other 



Trunk: 
Ch&st 

Abdomen... 
Other parts.. "J ■■ 

Total 
Otjier parts and several parts enumer 



All other 

Grand total 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1819 

BY THE VARIOUS INSURANCE INSTITUTIONS RV VATtror. ^ 

1902-Concluded. omuiiUNS, BY NATURE OF INJURY AND BY 

NUMBER-Concluded. 



Accidents in each specified industry. 



Leather 
and other 

animal 
products. 



Clothing. 



Paper 

and 

printing. 



728 



783 



Building 
and con- 
struc- 
tion. 



Cars, ve- 
hicles, 
etc. 



1,371 



Trans- 
portation. 



9»007 1,807 



Electrical 
industry. 



Agricul- 
tural 
labor. 



AU 
other. 



2,822 



649 



460 



537 



PER CENT. 



TotaL 



i 

4 



57,617 




ff 



! ! 



1820 



REtOKT OP THE COMMISSIONER OF LABOB. 



OF ACCI- 

NUMBER. fSource: BoUettino cU Notizie sul Credlto 



Nature of injury. 



BURNS, SCAIDS, ETC. 

|ingle parts of body, not including eyes.. 

Several parts of "body: 

Not including eyes 

Including eyes.. 

The entire bddy 

Total 

WOUNDS, CONTUSIONS, FRACTURE 

Right arm: 

Not including fingers 



S, ETC 



Including fingers. 
■Fingers alone. 



Total. 



Left arm: 

Not including fingers 
tocluding fingers.. 
Fingers alone... 



Total. 



Both arms: 

Not including fingers. 
Including fingers.... 
'Jngers alone.. 



Total. 



Right or left leg: 

Not including toes 
Including toes 
Toes alone.. 



Total. 



Both legs: 

Not including toes. 
Including toes... 
Toes alone :; ■ 



Total. 



Head and neck: 

Not including eyes 
Including eyes.. 
Eyes alone 



Total. 



Trunk: 

Chest 

Back.... 

Shoulders ;:;; 

Ribs 

Abdomen 

Inguinal region . 
Other parts of trunk' 



Total. 



Accidents caused by- 



Motors. 



Power 
trans- 
mission 
appa- 
ratus. 



Working 

ma- 
chinOTy. 



Eleva- 
tors, 
hoists, 
cranes, 
etc. 



Boilers 

and 

steam 

fitting. 



Explo- 
sives. 




9 


29 


7 


45 


18 


38 


5 


17 


4 


16 


5 


38 


7 


17 


55 200 



23 
37 
11 
4 
3 
20 
11 



109 



7 
5 

i 

4' 



==iLl 



OHAPTEE VII. workmen's INSURANCE IN ITALY. 1821 

D^N^im''^ INSURANCE INSTITUTIONS. BY NATURE OF INJURY AND BY CAUSE 

6 sulla Previdenza, August, 190G.] 

NUMBER. 



Accidents caused by — 



Combus- 
tibles, 
corro- 
sives, 
gases, 

vapors, 
etc. 



Land- 
slides 
and 
falling 
bodies. 



FaUs. 



RaUroad 
acci- 
dents. 



Naviga- 
tion. 



Electric 
conduc- 
tors. 



Instru- 
ments 
and 
tools. 



Loading 

and tm- 

loading, 

lifting, 

carrying, 

etc. 



Other 
causes. 



Total. 




t 




195 


321 


313 


481 


250 


258 


91 


158 


70 


181 


128 


161 


127 


184 


1,174 


1,744 



73 
111 
43 
15 
8 
54 
18 



322 



193 

1.847 

285 

36 
104 
529 

88 



3,082 



12 
21 
16 
11 
11 
21 
12 



104 



2,873 
926 
338 
396 
960 
470 



6,826 



IT 

!! 

'» 

i 



'ii|B:l 



li 






Nature of injury. 



BOUNDS, CONTUSIONS, FRACTUKES ETC 

concluded. ' '^•~ 



Accidents caused by- 



ThewKrC^f;-^'^' parte enumerated. 
Tow wounds, conteion,, f^etu.^', 



Suffooation. 
Drowning.. 
Poisoning. . . " " 
Other lesions"" 



Left upper extremity; 
Fingers alone... ^• 
All other 




Both arms: 

Fingers alone 
All other 



Total 



w upper extremity: 
Fngers alone.... ^.. 
All other 



Lower extremities 
1 oes alone 
All other.. ■"■ 



Total 

Head and neck; 
Eyes alone 
All other 



other. . 
Total 



Trunk: 

Chest 

Abdomen 

Other part^:::;;; 



Total 

Other parts and several par^'enumerate'd 

Totelwounds,contusions,fracture 

All other.. 



Grand total 
. .- 



CHAPTEB VII.— WOKKMEN 'S INSURANCE IN ITALY. 1823 

I^telir ''''"''"''''" INSTITtmONS, BV NXT.BK Or imuKV AND By CAHSE 

NUMBEB— Concluded. 



Combus- 
tibles, 
corro- 
sives, 
gases, 

vapors, 
etc. 



Land- 
slides 
and 
falling 
bodies. 



12 



Accidents caused by — 



Falls. 



Railroad 
acci- 
dents. 



857 
8 



3,916 



18,329 



1,150 
9 



9,901 



Naviga- 
tion. 



Electric 
conduc- 
tors. 



Instru- 
ments 
and 
tods. 



40 



1 I 



18,344 



9,916 



40 



26 



Loading 
and un- 
loading, 
lifting, 
carrying, 
etc. 



Other 
causes. 



44 



81 
1 



6,027 



262 
1 



Total. 



86 
3 



7,118 



2,681 
37 



6,028 



7,119 



1,454 

i 

2 



1,463 



53,484 

4 
f 

4 



57,617 



PER CENT. 




1824 



REPORT OF THE COMMISSIONER OF LABOR. 



i 



i; 



n 



The results of injuries are classified in three groups, death per- 
manent disability, and temporary disability. Combii'ied data for 
four years, 1899 to 1902, published by the National Accident In- 
surance Institution, have been used because they afford the advan- 
tage of larger numbers, from which the conclusions are somewhat 
more trustworthy than from other available data. These data 
are presented in connection with the study of the operationn 
of the national institution. A little more than 1 per cent of the 
accidents prove fatal, a little over 4 per cent lead to permanent 
d^ability, and nearly 95 per cent to temporary disability only 
The variations between industrial groups are important. The 
highest rate of fatal accidents is found in agriculture, 1.69 per 
cent of all accidents resulting in death; in minmg 1.68 per cent of 
all accidents resulted fataUy, and in building and construction 1 44 
per cent. The high fatality rate of agricultural accidents is due 
mamly to the fact that in this industry only persons tending machin- 
ery are covered by the compulsory accident insurance law. Besides 
the reporting of minor accidents m agriculture is probably not so 
efficient as in other industries. The lowest fatality rates are found 
m clothmg, paper and printing, brick, earthen and glass ware, machin- 
ery, metal working, and textiles. For four years there was not one 
fatal accident m the clothing mdustry, and only one in the paper 
and printing industries combined. 

A more careful analysis of the results of industrial accidents is 
possible for 1902. The tables which follow not only divide the 
accidents into fatal ones and those leading to temporary disability 
partial permanent disability, and total j^ermanent disability but 
indicate for the cases of temporary disability the duration of 'such 
disabihty, and for cases of partial permanent disability, the degree of 
disabihty m percentages. Out of 57,617 accidents, 54,439, or 94 5 
per cent, resulted in temporary disability only, and 2,716 or 4 7 
per cent in permanent, but only partial disabihty, leaving only 8 
of 1 per cent for the fatal cases and total permanent disabilitv cases 
combined. *^ 

Of the cases of temporary disability, the vast majority lasted a 
very short time only. Accidents causing disabihty of less than six 
days are not considered. Of the total of 57,617 accidents 27 666 
or 48 per cent, caused disability for only six to fifteen dkys 'and 
17,149, or 29.8 per cent, disability for sixteen to thirty days, so that 
m 77.8 per cent of the cases considered the disability did not last 
over thirty days, and in 7,356 cases, or 12.8 per cent, from thirty- 
one to sixty days. 

Even when permanent disabUity results from the a<;cidents, the 
reduction of eammg power is very small in the majority of cases. 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1825 

^U^\^'Ju^ ""^^."^ permanent disability, in 1,157, or over two- 

f^^: ctacTv'of'th'"*"^!^ ^'^^ ' *"' ° P- -'^^ ^'^^^ ot^ 
eammg capacity of the mjured, and in 576, or a little more than 

one-fifth, from 11 to 20 per cent of the earning capacity Zth^tZ 
more than three-fifths of all the cases of permanent Mty^uct 
disabibty does not exceed 20 per cent. The tables show t^e result 
llu'""" '" ^^"'^ ^'"^'"^ ^-"P -d -1- for each auTS 



! 1 



1826 



REPORT OF THE COMMISSIONER OF LABOR. 



RESULTS OF INJURIES, BY 
(Source: BoUettino dl Notizle sul Credlto 



CHAPTER Vn.— workmen's INSURANCE IN ITALY. 1827 



Cause of accident. 



Motors 

Power-transmission apparatus. 

Working machinery 

Elevators, hoists, cranes, etc. .*. 
Boilers and steamfitting... . 
Explosives [[ 

Combustibles, corrosives, easeis. 
etc 

Landslides and feuing" bodies". '..': 

Railroad accidents * " 

Navigation .*.'."" 

Electric conductors 

Instruments and tools 

Loading and unloading, lifting," 

carrying, etc „ . . 

Othercauses 



CAUSE OF ACCIDENT, 1902. 
e sulla Previdenza, August, 1906.J 



Accidents causing temporary disability which lasted- 



6to 

10 

days. 



11 to 
- 15 
days. 



Total. 



53 

155 

1,836 

151 

34 

11 

918 

4,889 

2,478 

9 

1 

8 

1,882 

1,714 
449 



14,588 



47 

179 

1,940 

159 

29 

22 

859 

4,201 

2,123 

9 



16 to 

20 
days. 



5 
1,583 

1,607 
315 



13,078 



28 
94 
1,192 
127 
15 
14 

637 

2,735 

1,454 

3 



21 to 

30 
days. 



4 
886 

1,063 
190 



47 

133 

1,345 

146 

18 



683 

2,756 

1,417 

6 

1 

4 

8U3 

1,118 
205 



31 to 

60 
days. 



61 to 

90 
d&ys. 



8,442 8,707 



37 

112 

1,183 

112 

11 

28 

580 

2,245 

1,359 

6 

4 

6 

527 

984 

162 



7,356 



8 

21 

168 

20 

2 

9 

74 

377 

335 

3 

..... 

83 

166 
27 



91 to 

181) 

days. 



Ovar 

180 

days. 



4 
23 
69 

6 



1,294 



6 

32 
235 

210 



1 
29 

119 

20 

757 



4 

24 
2 



Total. 



11 

73 
56 



35 
3 



217 



224 
721 
7,757 
724 
109 
120 

3,795 

17,510 

9,432 

35 

6 

29 

5,800 

6,806 
1,371 



54,439 



RESULTS OF INJURIES, BY 
[Source: BoUettino di N<itizie sul Credit© 



Industrial group. 



Accidents causing temporary disability which lasted— 



6to 

10 

days. 



Mines and metallurgy 

Brick, pottery, and glassware.".' 

Metal working 

Chemicals, etc 

Food products 

Woodworking 

Textiles !!!".!!!!!!!! 

Leather and other animal prod- 
ucts 

Clothing .".*.'.'!.".'!.".'.' 

Paper and printing 

Building and construction.'.'.*." 

Cars, vehicles, etc 

Transportation 

Electrical industry 

Agricultural labor 

Other industries 



Total. 



2,013 
594 

4,211 
856 
670 
222 

1,455 

264 
228 
388 

1,668 
626 

1,015 

198 

50 

130 



11 to 

15 
days. 



14,588 



2,434 
455 

3,U63 
639 
597 
287 

1,545 

155 
212 
325 
1,971 
394 
625 
148 
90 
138 



16 to 

20 
days. 



13,078 



1,805 
284 

1,841 
343 
392 
206 
978 

81 

118 

173 

1,398 

219 

367 

79 

69 

89 



21 to 

30 
days. 



1,871 
247 

1,871 
31H 
44<l 
21(1 

1,080 

100 
92 

18() 
1,502 

198 

318 
81 
90 
77 



31 to 

60 
days. 



8,442 I 8,707 



1,648 
189 

1,445 
272 
362 
181 
875 

77 

92 

159 

1,331 

192 

303 

83 

87 

60 



61 to 

90 
days. 



7,356 



313 
38 

213 
42 
63 
35 

136 

9 
10 
27 
284 
28 
51 
9 
22 
14 



91 to 

180 
days. 



2tl 
19 
97 
26 
29 
14 
74 

8 
4 

17 

185 

19 

27 

6 
15 

6 



Over 

180 

days. 



Total. 



57 
9 

23 
9 

13 
5 

22 



2 
55 

8 
10 

1 

3 



1,294 



757 



217 



10,352 
1,835 

12,764 
2,505 
2,566 
1,186 
6,166 

694 

756 

1,277 

8,394 

1,684 

2,716 

605 

426 

514 



54,439 



Accidents causing partial permanent disability, with reduction of 

earmng power of— 



Ito 
4 per 
cent. 



5 to 
10 per 
cent. 



11 to 

20 i)er 

cent. 



9 

21 

434 

23 

1 



14 

240 

88 

1 

"2" 

86 

194 
38 



21 to 

30 per 

cent. 



1,157 



5 
10 
195 
6 
2 
8 

28 

148 

68 



1 

49 

44 
12 



31 to 
40 per 
cent. 



576 



3 
13 
70 
3 
1 
8 

16 
98 
50 



37 

16 
6 



330 



3 
8 

41 
2 
1 

10 

14 

129 

43 



40 

15 
12 



41 to 

50 per 
cent. 



1 

6 

24 

4 



8 

3 
31 
38 



51 to 
60 per 
cent. 



61 to 
70 per 
cent. 



71 to 
80 per 
cent. 



5 

17 

3 



318 



2 
11 
19 

1 

"i 
2 



1 

28 



130 



1 

4 

2 
12 
21 



Total. 



Acddents 
causing — 



Total 
perma- 
nent 
dis- 
ability. 



1 

8 

23 

2 



63 



74 



3 

8 

10 



62 



22 
73 
833 
44 
6 
46 

82 

679 

347 

2 

'4' 

222 

283 
73 



Death. 



Total 
acci- 
dents. 



1 
4 

4 
5 
8 



2,716 



INDUSTRIAL GROUPS, 1902. 
e sulla Prevldenza, August, 1906.] 



4 
5 

32 



2 

11 

21 

8 

1 

13 

35 

150 

129 

3 

... 

6 

26 
14 



430 



248 

806 
8.611 
776 
117 
183 

3,916 

18,344 

9,916 

40 

6 

44 

6,028 

7,119 
1,463 



57,617 



Accident causing P-«^nn^ent mgbmty. with «daoti„n ., 



Accidents 
causing— 



Total 
acci- 
dents. 




10.947 
1.917 

13,331 
2,592 
2,759 
1.327 
6,580 



1828 



EEPORT OF THE COMMISSIONER OF LABOR. 
SICKNESS INSURANCE. 






In the field of sickness insurance much less has been accomplished 
than in the fields of insurance against accidents and old age and 
invalidity; and this is especially true, when the efforts of the Govern- 
ment are considered. There is no obligatory insurance against 
sickness, nor has the State adopted any active measures to stimulate 
voluntary insurance, as it has done in regard to accident insurance 
and old-age and invalidity insurance. 

The legislative interference with the private efforts toward sickness 
insurance are as yet limited to the regulative law of April 15, 1886, 
which aims only to regulate the mutual benefit societies. 

Moreover, it is not quite accurate to speak of these mutual benefit 
societies as a system of insurance of workmen against sic^kness, for 
they are not limited either to wage-workers or to the one form of 
insurance — that against sickness. Howevt^r, wage- workers do con- 
stitute a great majority of their membership, and while many forms 
of benefits and assistance are furnished by some of these societies, 
sickness insurance or at least benefits in cases of sickness, as a matter 
of fact, do represent the most frequent and most important form of 
insurance, and it is therefore most convenient to speak of the opera- 
tions of these organizations under the caption of ''sickness insunmce." 

HISTORY. 

Some mutual benefit societies of Italian workmen date back into 
the eighteenth century, and owe their origin to the old trade guilds, 
but only during the last 40 years, or since the unification of Italy, 
has any general movement toward the establishment of mutual bene- 
fit societies manifested itself. The statistical account of these societies 
given elsewhere shows that in 1862 only 443 of these societies were 
enumerated; in 1873, 1,447; in 1878, 2,091, and by 1885 they had 
increased to 4,900. In the beginning these societies were organized 
very informally. They had no legal standing and therefore could 
not own any property. In their development serious difficulties soon 
appeared, as was the experience in all countries where mutual benefit 
societies were developing. Aside from occasional fraud and abuses, 
most such societies came to grief because of the entire absence of an 
actuarial basis for their operation and lack of executive ability and 
famiharity with the problem, which made these associations offer 
much greater benefits than they were able to meet. These difficulties 
were especially great for the associations wliich endeavored to grant 
old-age and invahdity benefits. Few of the associations kept the 
accounts of different forms of benefits separated and because of faulty 
bookkeeping they were not aware of their financial difficulties. 

The necessity of some legal regulation of these societies soon 
became quite evident, both to the Government and to the societies. 



CHAPTER VII.-W0RKMEN'S INSURANCE IN ITALY. 1829 

but it was felt that a collan^P nf i^ u ^^ ^^^egate, 

have a very detri^entaLSp^o^^hTs^^ii-tbranrir ^""'' 
ative spirit of the Italian workmen. ^ ^"""P^'- 

On the other hand the Iflrt r^f i.w,«i * j- 
drawback and impediment to tL L^ °*^°^ P'''^^** » ««ri«"« 

were anxious trextt^d thet 1 T '"u"^'''" «««ociations, which 
of their proper "y-holdwt^^^^ 'T" !! '* f'^^^^ *»»«- 

associations applied tofhe O^. ^'"f f"*'^' therefore, individual 

decree, but ^tl\::Zr''Z:ZVLZ7ril '^ '''''' 
or at least of confidencp f ha rT ^^^^^^Wy a mark of approval 

study the financtf T2;*o ^rrraioTber' '' ""^^"^^ '« 
requests. The results were Jm^ZTr %a f**"*™*^ '"^l* 

to the Senate of April ^188^ ™*^!^^^"'»»W' stated in his report 

out of 100 assoltZ r;q2i^tcr n" '''' '^"^ l''^ P^^^^^' 
only 20 were granted^hirrejutf ''»«°^*>'--t«>'» by royal decree 

GoLnment and nViXHlt'"'' ' 'Z^ '"^'^^ ''^ *^« 
on .une 0, .., by the ^^^^ T^^.:, ^IZ^Z'::^ 

"Setrrsr Td~^ -Sctiirn:^ -' '-^ 

(incoiSoL'ruiie^s Te sol^rJj *'^ 'r«*^ '^^ "recognition" 
actuarial science. In Sscusslf tt T? ^'^ '''' ^'^^''^^ "^ 
number of representatives of ^^ ^'^^''''Jf t'°° ^^^^^ by a certain 
lead to an exLre iSel'e "^^^^^^^ ^°^'^*'^^ *^** *^ -8^^* 
tions of such voluntary orgSzItLns th« ''°?'"' "^'^ *^" °P«^»- 
such danger was purely Srin«!v' '"'*^' ^"^^ «»* t^at 

to be an entirely volunlatv^tr^; «»nce incorporation was intended 
the society itself"^ and no orSni!!? ^""*^^, ""^y "P^^^ application of 
other hand the ministeTdS 'h 7 ""^ ^"'"■^'^ "^ "PP'^" On the 

the consultative comm^^itTafthe?"^^''''""' ^^^"^ '"'^''^^^'^ ^^ 
hm.ted only to conditions of the ! 'T'^''^'^'' ^^^ recognition be 
-— -— .!^!lll_^teformalw^ization of the society 



1830 



REPORT OF THE COMMISSIONER OF LABOR. 



! i 



i» 



without regard to the actuarial basis. Such conditions would not, in 
his opinion, give any guarantee of security, and it would not be 
proper for the Government to grant the natural support of its 
recognition to any institution whose setmrity was not guaranteed in 

any way. 

The bill of 1877 was prepared in accordance with these principles. 
It proposed the organization of a central commission of mutual 
benefit societies to which any such society might apply for a "recog- 
nition," presenting complete accounts of its financial standing. In 
accordance with the broad conception of these societies as insurance 
institutions, not only sickness insurance but also old-age pensions, 
widows and orphans' pensions, forms of insurance which evidently 
required very strict adherence to actuarial principles, were to be 
permitted. In addition the societies were permitted to conduct 
educational work or engage in cooperative enterprises, such being 
the custom in a great many cases. For each form of insurance the 
society was required to keep a separate account and to demand 
separate contributions. A minimum number of insured was required, 
500 for sickness insurance and 200 for old-age and life insurance. 
The nature of the constitution of the society and the method of 
investment were also regulated, but the most important provision 
was that permitting the recognition of only such societies as fur- 
nished evidences of a satisfactory relation between the obligations 
assumed and the means at their disposal. It was explained in the 
memorial that in order to obtain this satisfactory actuarial basis the 
recognized societies would have to avail themselves of mortaUty and 
sickness tables based as far as possible upon Itahan data and also 
upon foreign statistics, which tables might be prepared by the com- 
mission which was to include legal, mathematical, and insurance 
experts. Recognized societies were to remain under the supervision 
of the Ministry of Agriculture, Industry, and Commerce and the 
commission. The ministry could accordingly order an investigation 
at any time and cancel its recognition if the accounts proved unsatis- 
factory. In recognition of compHance with these stiingent require- 
ments of the law the incorporated societies would accjuire, in addi- 
tion to the rights of legal persons, also other privileges, such as exemp- 
tion from certain taxes, not only of the society as such, but also of 
the benefits paid to its members, and pubUcation of its reports in 
certain official journals at the expense of the ministry. 

This legislative project was prepared by the consultative commis- 
sion for labor and savings institutions after a study of the legislation 
of France^ Belgium, Great Britain, and Germany. 

This bill did not meet with the universal approval of the societies 
interested. The requirements for incorporation were considered too 



CHAPTER VII.— WORKMEN'S INSURANCE IN ITALY 1831 

On June 11, 1880, the new minister of agriculture inH.,=f 
commerce introduced a new bill in th« Sp^^^! u •?**"^*'7, and 
the reauirement^. nf ih^ u uii Senate. He admitted that 

hand d1~Jthe n£,% ^k" ^"'■^ *«« '''^^^^' but on the other 
foritasTnSX'exJ:^^^^^^^^^^^ 
considered essential: mThe^Ltd^fv'™^/"?"'^^^^^ ^«'« 

-iet,; (3) a due vZntx:::fz'^^^jL:^: ::r.is:. 

(3) a certam minimum number of members- and Z T^ *^^^^^' 

of the earlier hill tL \ • "»<''"aed aU the essential features 
me earner bill. The most unportant diflferences werA th.t fiT 
appbcation was to be mad*, tr. tL i i • .. . ^^^ ^^'^^ t^a* the 
incoiporationwastobe^rSredbwhi^' i!n r"^ authorities and 
of the society was to be iTvestwi K ' ""^"^^ t^e^ctuarial standing 

from local P^ofesL^^'ormTaS^ ^^^at^^^^^^^^^ 
mission for the rontrni «f tu^ v.„ cj. • . * central com- 

lui luo control ot the benefit societies was nrpqAm^fl^ k..^ * 

composition was made fully reDre<!Pn««t,Vp ♦T^^^ , ' **"* '*^ 
three members annointpH K^ representative— that is, m addition to 

three by the ChTmber of Z^J ^T""' '^'"^ ^^ '^^ ^^^^' ^^^ 
selectedVthe soltL («^^^ *'"^ "^"-^ *« »- ^^ -«-bei. 

The bill was somewhat amended in ih^ q^ * i . 
discussion was passed with snStl^ZnTZZ\^'lL\ """"I 
presented to the Chamber of Deputies on March 8 iS Th„ ' *'!'* 
bill was referred to a nflr]i«TYi^r.f ^>Aaicu o, i«»i. n^e senate 

report on Decem^r irSi* nT ?°°»^'<'''. .^^ich brought in its 

as proposed byti comm£C ^ ^^^^^ *'''^'' "" '"^ 
text of the senate hill ihl • VVhUe adhermg somewhat to the 

riaily changrS tt" ir,1Z;;\1 the^l^rVh^-^^^ "^^-^ 

foreign law; wareSir:^ adaS to'th ^ '^'^'f ''''' '^'"^^ '' '^^ 
Italian workmen that the Z,f f**, ^ ^^'^^ requirements of the 
usefulif left todeVelon *„f n .^T^* ^""'^^'^ ^«"ld be more 
receive the benefils of bcolt^'r' *t* *'^^ ^'^""'** "^ -«««d to 
to any governmentafreSrrXr'^t ""! .'"'^J'^*^ themselres 
project of the parliamTntai^ 1 * - ^"^ *^^ *'"'^"° '^^- The 
-77^7—- LJ!!^!^ ^ commission, therefore, e xcluded aU 

niayo 1881. "*' """"t"* e commerc.o (MiceU), nella tomato deU' 8 

67725°-voi, 2-U— 22 



1832 



BEPORT OF THE COMMISSIONER OF LABOR. 



I 



reference to the organization of a central commission of mutual 
benefit societies, the requirements of a due proportion between 
dues and benefits, the separation of the separate forms of benefits 
and their accounts, the demand for a minimum number of members, 
and the method of investment of the funds. It also excluded pen- 
sions for widows and orphans from the list of permissible benefits, 
feeling that that function required a stricter adherence to insurance 
principles than was desirable to exact from the mutual benefit 
societies. The bill, as amended, simply contained provisions for 
incorporation of mutual benefit societies by local judicial authorities, 
with very few provisions for control of such societies. This proposal 
of the parliamentary commission never came up for discussion in 

the House. 

The principles enunciated in the report of the parUamentary 
commission were, however, embodied in the next project of a law 
concerning mutual benefit societies, introduced in the Chamber of 
Deputies on June 21, 1883. The bill was referred to a new com- 
mittee, which brought in its report on February 19, 1884, introducing a 
few minor changes. The consideration of the bill was delayed another 
two years, and the bill was finally passed in the Chamber of Deputies 
on April 8, 1886, introduced in the Senate on the next day, reported 
by the committee on April 10, 1886, passed and became a law on April 
15, 1886. This rapid enactment of the law after a discussion of ten 
years seems to have been influenced by a decided change in pubUc 
opinion and-in its opposition to some regulation of the operations of 
the mutual benefit societies, while on the other hand the Government 
has finally adjusted the law to the demands of the opposition and has 
abandoned the effort to introduce a system of careful (control of the 
financial and actuarial status of the recognized societies. 

PROVISIONS OF THE LAW OF APRIL 16, 1886. 

The law concerning the incorporation of mutual benefit societies, 
approved on April 15, 1886, states the requirements with which a 
mutual benefit society must comply in order to be granted such 
recognition or incorporation, the degree of control exercised subse- 
quently by the Government over such recognized societies, and the 
benefits derived by such societies from this recognition. 

The law applies to all mutual benefit societies witliout considera- 
tion of the occupation or economic standing of its mtjmbership, pro- 
vided they aim at one or more of the following objects: To assist tlieir 
members in case of illness, working disabihty, or old age, or to come 
to the assistance of the families of deceased members. The law care- 
fully avoids the word ''pensions'' and in a subsequent circular of 
July 2, 1886, the minister of agriculture, industry, and commerce 



CHAPTER VII.-WORKMEN'S INSURANCE IN ITALY 1833 

The requirements for incorporation contfti-np<1 ;„ *k i 
manly constitutional. The c^nstitutiorof thf so'et ^ '" T 
admission must define the foUowin., Thl \ ^ ^ aPPlymg for 
society; its objects and aims c^ndS; f a ^"*^1"»rters of the 
of membei.; Jheir obliga^l^a^d "Ttl JheTeX T^ ^ ^'^"^"^ 
tures and investment of the properW and Ihl / "^ ^^P^'^'^'" 

conditions of a quorum- of Sf / ^ guarantees required; 
adopted; the requTremeni of IZ ^ ^ •**^ '''''*'"'^^ ^^^ resolutions 
of the executiXZSe J^d oMhTTd^ *" *'' ''''''''' '"^^^^S' 
mittee; the method ^f oJl^ation of th*? "^ " '""^'^o^' «>°>- 
functions; the mode of reXTtZn of t *'<?'°'"'"r *"*** '^^ 
and other outside partiet ThT!. T*^ ^^ ^"^*-^ ^^^'"''^ ^^^ «»"rt 
up of the affait of tTet'i^ty or To'r'^^"" i?'^ T'^""^ '''' ^^^"^^ 
the proper consideration of fh^fi^ ^-^ ^^^ constitution, mth 
unde'l.tLd trtthe trst" utln^!? requirements of the law. It is 
to the law. The IctuTl con .?. 7.T' *'*"'**''' '"'^^^S contrary 

the discretion of the lciety?tsllf h Z^' r'*'*"*'""^ ^^ *»»"« 1«^* ^ 
ments which must ^Z^ .h ' *^^ '*^ "^""^"^ * ^^^ require- 

societies. ^^'™ **"" operations of the mutual benefit 

First, in addition to the main obiects thn f^^ t . . 
ance enumerated above th^ r»!^ objects, the forms of mutual assist- 

the following aclivitir' CoJ^ZT" I'^"'^'' '""^ "°*^^^*»'^« ^^^J 
bers and thfir fammeT ^sZZTfl *''"''\*'*>'^^1 -«rk among mem- 
trade, and other functiorSitutionTfr "'''"^''T^ *-^« «^ 
provement. No exnendit,.™! "^^*'*"*'<»>s /<>r savmg and social im- 

than those specmed'^above Tr tTIv Tk*"' '''' ^'^^ "'''''^ P"P«^ 
Second, if a society recetv^, it •^^'' ^^^ '^'^ ""^ administration. 

permanent object,lieTgaetf rd" 'r*""^ ''' " ^'^"^ ^^ 
rately and the re;enue derived frl "Jr '°"' ""f ' ^' ^'P' ««?*- 
with the wishes of thrdonor ^''P^'''^*'^ '"^ accordance 

locaffvtrr^lrtSredto r - T ''-' '^"^^ •'^ -^« to ^^^ 
constitution certified by a^otartn ^PPl*''**?'"'. •«"«* be a copy of the 

mg the rights of legal pers^ns^ fh .'^ ^^'^^ '^'^^^'^y P°««e^- 
effect, and wishing to obtlTn ^L L r?- ""f ''^'° '^' '*^ ""'^^ ^''to 
must also make the reauS **'V**'ift">°al privUeges under this law, 
if necessary. ^""''^^ apphcation, adjusting their constitution^ 



1834 



EEPOBT OF THE COMMISSIONER OF LABOR. 



I i 



Societies in existence at the time when the law went into effect and 
having no such rights may be granted incorporation on application, if 
their constitutions conform to the demands of the law. Otherwise 
the constitution must be amended at a general meeting specially 
called for that purpose, and a certified copy of the amended constitu- 
tion with a certified copy of the minutes of this special meeting 
must be attached to the application. 

Societies organized after the law went into effect must furnish a 
certified copy of the constitution and of the procedure of the charter 
meeting of the society. 

After examining these documents in order to see that they conform 
with the requirements of the law, the court orders that the name of 
the society be entered on the register of recognized societies. In case 
of desired change in the constitution the same method of procedure 
as in original incorporation is required. 

The governmental control consists mainly in exacting reports and 
holding the officers of the society responsible for observing the 
requirements of the law and the provisions of the constitution. The 
officers of the society are individually and jointly responsible for the 
execution of their respective duties, for the correctness of all entries 
in the books and for strict comphance with all provisions of the con- 
stitution of the society. 

On the other hand, an officer who formally records his dissent from 
a resolution in the minutes, and who gives immediate notice of such 
an illegal resolution to the supervising committee, thereby is relieved 
from such responsibility, as is also an officer who was absent from the 
meeting of the executive committee when the decision in question was 
taken. 

Furthermore, an officer who knowingly makes false statements con- 
cerning the status of the society, or suppresses any actual facts in the 
accounts, or before the general meeting, or in court, is punishable by 
a fine of 100 lire ($19.30) in addition to the usual civil responaibihty. 

If suspicion arises concerning the existence of gross irregularities in 
the work of the officers or of the supervisory committee, this may be 
brought to the attention of the court, provided at least 20 members 
so decide, and if the court should find these suspicions well grounded 
it may take the necessary legal measures. 

If a mutual benefit society has failed to comply witli the regula- 
tions limiting the legitimate expenditures to certain [purposes, the 
court must, upon application either of a member or of the public 
authorities, make the demand upon the society to comply with the 
law within fourteen days, and upon failure to do so, must order the 
name of the society stricken from the register of incorj)orated 
societies. 






CHAPTEE VII._W0EKMEN'S mSURANCE m ITALY. 1836 

authorities, 4ir7lS coS„H„ """"TT"' ^^""^^ *^« ^^'^ 

Tu • • 1 ^^" ^^^® expenditures are met must be incUnut^A 

pei^ons, and for this reason thi" Wnit on ' Z T °'" ?^ ^'^"' 
equivalent to "incorporation '^ l3 bn tJf,. ^^'^'^'^^''^^ «« 
are extended to the Lognized ^utfJt:^^^:^^'^^l?- 
from stamp taxes rpo-i^frAr + o^« 4.1. • "^^^^ ot»cieues. HiXemption 

tax, and frorcrS^anSe^S^^^^^^^ ^^P^'^ 

members from seizure and cesln ^ ^^"'^'^ **» *'^^ 

The legal status of the mutual benefit societies bfl« n^t i 

have as y^t%Vn\2lZZZt:!:lJZZ'^^^^^^^ 
sickness than those contained in Saw *^ ^"'^ "* ""^^ "'^ 

JetirrthfeS- :l:tT^t^J trr'^-'' ^-^«* 

the statistical data available ^ *""* ^^ ^^""^^^ ^'""^ 

STATISTICS OF XVTTIAL BEHBUT SOCIETIES. 

unStltSat'^SSw hT"*"^' '^'^^^* ^--«- -- 
1885, 1894, and iS* ^*" ''°*"'^' ^ '^^^' ^^^S, 1878, 

While they are not all elaborated exactlv on tl,^ o 
many comparisons are possible, and Se six renon' ? "'• l^'^' 
siderable material for a studv of thJj . ^"Ports furnish con- 
Z ^"^ " ^^"'^y "^ *^^ development of these institutions 

MutuoSocco,«>, RomTmr' ' * ^'^^"^^°- Sta&tica delle SocieUL di 

(3) Ministero di AffricolfnrQ t..^ ^- 

far; - «---- -^^:^'^^'^^z^t^-^^, 

Anne^ alle Mede^izne, anoTlsst Rol xm"" ' ''"' ""''*"^°°« ^P"*^- 
(5) Muustero di Aericoltnr. t j ™' ^'"»- 

1904. Studio Stotistico. Rol T^ ^ ^"""^ ^ ^''^ »! 31 decembre, 



I 



Mi 



i 



y 

J i, 



1836 



BEPOBT OF THE COMMISSION EE OF LABOR. 



NUMBER OF SOCIETIES AND MEMBERS. 



The number of societies of mutual benefit, their membership, and 
the proportion of the membership to the population is shown in the 
following table. In none of the six investigations was it possible to 
obtain the desired information from all societies, but it is believed that 
the number reporting is sufficient to make the data representative. 

The number of societies and the membership increased rapidly up 
to 1894. During the period 1894 to 1904 a material decrease has 
taken place, and it seems certain that tlie growth of mutual benefit 
societies has been interrupted and the efliciency of the law of 1886 as 
a stimulus has greatly declined. In 1904 the average number of 
members per 1,000 of population was only 27.82; so that, even if 
women and children are excluded, only a small percentage of ItaUan 
citizens gainfully employed hold membership in mutual benefit 

societies. 

In addition to the societies included in the next table there were 
four societies of raih-oad employees in 1885 and three in 1894; but as 
data for these could not be obtained for other years they have not 
been considered in this table. 

NUMBER AND MEMBERSHIP OF MUTUAL BENEFIT SOCIETIES FOR VARIOUS YEARS, 

1862 TO 1904. 

[Source : Le Societal di Mutuo Soccorao, 1878 and 1904, and Annuario Statistico, 19a5 to 1907. Data are 

exclusive of railroad societies.) 



Year. 



1862(a). 
1873... 
1878. . . 
1885... 
1894. . . 
1904... 



Population. 



21,929,176 
27,132,848 
27,962,084 
29,300,268 
31,191,564 
33,282,850 



Total 

number of 

societies. 



443 
1,447 
2,091 
4,896 
6,722 
6,535 



Number of 

societies 

reporting 

memljer- 

ship. 



Number of 
members. 



417 
1,146 
1,961 
4,768 
6,684 
6,347 



111,608 
218,822 
331,648 
730, 475 
936,686 
926,026 



Nimiber of 

members 

per 1,000 

})opula- 

tion. 



5.09 
8.06 
11.86 
24.93 
30.03 
27.82 



Average 
number of 

members 
per society. 



252 
191 

ie7 

153 
142 
146 



a Data for this year do not include the Province of Venetia and the city of Rome, 

As the law for incorporation of mutual benefit societies was enacted 
after the investigation of 1885 was undertaken, only the last two 
investigations contain separate data for incorporated and unincor- 
porated societies. By 1894, 1,156, or 17.2 per cent, of the societies 
had obtained incorporation or recognition under the law; and by 
December 31, 1904, the number had increased to 1,548, or 23.7 per 
cent. Thus even nearly twenty years after the law of 1886 went into 
effect, less than one-fourth of these societies availed themselves of 
the advantages offered by the law. The effect of the law upon the 
development of the mutual benefit movement must, therefore, be 
considered very limited. For 6,347 out of the 6,535 societies the 
membership has been ascertained. Of these societies 24 per cent 



II 



CHAPXEE VII.— WORKMEN'S INStTRANCE IN ITALY. 1837 

lai^er than tha! oT^eT^LtrlZT'tlf r^'"^ .^^^ 
Incorporation is therefore found t'o be an eS^of le^T '" 

t^**"^-' Le Society dl Mutuo Soccorso, 1904.] 



Kind of society. 



1894. (a) 



Incorporated... 
Unincorporated. 



Num- 
ber. 



Per 
cent. 



Mutual benefit societies in— 



1904. 



Num- 
ber. 



Per 
cent. 



Reporting 
membership. 



Total. 



1,156 
5,566 



6,722 



17.2 
82.8 



100.0 



1,548 
4,987 



23.7 
76.3 



Num- 
ber. 



Membership. 



Per 
cent 



Number. 



Per 
cent. 



6,535 



100.0 



1,525 
4,822 



6,347 



24.0 
76.0 



Aver- 
age per 
society. 



288,598 
637,428 



100.0 I 926,026 



« Exclusive of three societies of railroad employees. 



31.2 
68.8 



100.0 



189 
132 



146 



lowingstaC"n;;a XS?dLTt"S^ 

females constituted even onltenth o^t h A . . "^ "J*^*'""^ ^*^« 

societies. The interests f«tt1«i k ^**^ membership of the 

tion of ^^yiesi:^^jz'z-^jzi^z tt: 'i^r'" 

KStro^rtei^;, - It ^ti T?^- - - 

25.1 per cent. societies and of the female members only 

MEMBERSHIP OF MUTUAL BENEFIT SOCIETIES FOR VARIOtS VPA.. 

BY SEX. VARIOtS lEARS. 1862 TO 1904. 

Source: Le Society di Mutuo So«orso, 1862, 1878, 1885, and 1904.] 



Year. 



Males. 



1862 

1873 

1878 

1885(c) 



1904: 



Number. 



Incorporated societies 
Unmcorporated societiis^! 



101, 410 

197, 719 

«299,544 

531,047 



Per cent. 



Females. 



Number. 



Per cent. 



90.86 

90.36 

90.35 

93.68 



10,198 

21,103 

«»28,502 

35,853 



9.14 

9.64 

"8.62 

6.32 



Total mem- 
bership 



111,608 
218,822 
» 331, 548 
566,900 




*ror 3.705^sirieuS 0%^""' "^ ""' "^^^*«^- 



926,026 



1838 



BEPORT OF THE COMMISSIONEE OF LABOB. 



The following table shows that in 1904 less than 4 per cent of the 
societies reportiag sex of members were organized for females alone. 
The number of organizations admitting only males has increased from 
a little over seven- tenths in 1873 to eight- tenths in 1904. 

NUMBER OF MUTUAL BENEFIT SOCIETIES IN VARIOUS YEARS, 1873 TO 1904, BY SEX 

OF MEMBERSHIP. 

[Source; La Societk di Mutuo Soccorso, 1873, 1878, 1885, and 1904.1 





Societies admitting— 


Number of societiei — 


Year. 


Males only. 


Females only. 


Both sexes. 


Report- 
ing sex. 

1,364 
2,091 
3,762 

l,fl25 
4,822 


Not re- 
porting 
sex. 






Num- 
ber. 


Per 
cent. 


Num- 
ber. 


Per 
cent. 


Num- 
ber. 


Per 
cent. 


Total. 


1873.. 

1878.. 

1885 


900 
1,537 
2,861 

1,178 
3,900 


71.20 
73.50 
76.05 

77.25 
80.88 


42 

70 

109 

38 

214 


3.32 
3.35 
2.90 

2.49 
4.44 


322 

484 
792 

309 
708 


25.48 
23.15 
21.05 

20.26 
14.68 


183 

"1,138' 

23 
165 


1,447 
2,091 
4,900 

1,548 
4,987 


1904: 

Incorporated societies 

Unincorporated societies. 


Total, 1904 


5,078 


80.01 


252 


3.97 


1,017 


16.02 


6,347 


188 


6,535 





In addition to the active members of societies, beloQging for the 
benefits to be derived from such membership, large numbers of honor- 
ary and contributhig members assist them by their contributions 
or influence, thus introducing an element of private and organized 
charity into the activity of these mutual benefit societies. In 1873 (*) 
the number of such members was 19,263, or about 9 per cent of 
the active membership, and in 1878, 32,177, or nearly 10 per cent of 
the active membership. In 1885 the total honorary membersltip 
amounted to 52,763, of whom only 31,690 were contributing. For 
later years information is not available, except that on December 
31, 1903, (^) the incorporated societies had 11,675 contributing 
honorary members as against a total of 259,914 active members, 
or only 4.5 per cent. The influence of the honorary members in the 
development of the mutual benefit societies seems to be decreasing. 

SIZE OF SOCIETIES. 

The distribution of the mutual benefit societies by the number of 
members is shown in the following table for the last tliree censuses, 
1885, 1894, and 1904: 



o Society, di Mutuo Soccorso, 1878. 
& Society di Mutuo Soccorso, 1904. 



4 



CHAPTER VIT.— workmen's INSURANCE IN ITALY. 1839 

NUMBER AND PER CENT OF MUTUAL BENEFIT SOCIETTF^? m i^Anrr >,x.„ 

GROUP AT THE END OF EACH ?EA|?'^^;^/rND^,"^.''^''^^^^°^^ 
" [Source: La SocieU di Mutuo Soccorso, 1885, 1894, and 1904.] 



Membership 
group, (o) 



Mutual benefit societies in— 



1885. 



Less than 50 

50 to 100 

101 to 200 

201 to 300 

301 to 400 " 

401 to 500 

501 to 600.... 

601 to 700 

701 to 800 - 

801 to 900 

901 to 1,000.. 
1,001 to 1,500... 
1,501 to 2,000.. 
2,001 to 3,000.... 
More than 3,000. 
Unknown 



Num- 
ber. 



} 1,768 

1,194 

422 

153 

68 

36 

21 

16 

13 

8 

18 

7 

1 

3 

1,172 



Per 
cent. 



1894. 



1904. 



Incorporated. 



36.08 

24.37 

8.61 

3.12 

1.39 

.73 

.43 

.33 

.27 

.16 

.37 

.14 

.02 

.06 

23.92 



Num- 
ber. 



3,649 

1,779 

620 

249 

102 

54 

35 

26 

18 

11 

26 

5 

5 

8 

138 



Per 
cent. 



Total 4,900 



100.00 



6,725 



54.26 

26.46 

9.22 

3.70 

1.52 

.80 

.52 

.39 

.27 

.16 

.39 

.07 

.07 

.12 

2.05 



Num- 
ber. 



{ 



224 

380 

497 

199 

99 

51 

23 

14 

6 

6 

7 

11 

4 

4 

23 



Per 
cent. 



Unincorporated . 



14.47 

24.55 

32.11 

12.85 

6.39 

3.29 

1.49 

.90 

.39 

.39 

.45 

.71 

.26 

.26 

1.49 



Num- 
ber. 




Total. 



Num- j Per 
her. cent. 



1,268 

1,543 

1,231 

367 

188 

98 

47 

26 

13 

13 

8 

18 

6 

6 

165 



25.23 
30.94 
24.68 



36 
3.77 
1.97 
.94 
.52 
.36 
.26 
.16 
.36 
.12 

.12 

3.31 



100.00 1,548 I 100.00 



1.482 

1,923 

1,728 

'566 

287 

149 

70 

40 

19 

19 

15 

29 

10 

10 

188 



22.68 

29.43 

26.44 

8.66 

4.39 

2.28 

1-07 

.61 

.29 

.29 

.23 

.45 

.15 

.15 

2.88 



4,987 i 100.00 



6,535 100.00 
« in the report ,„r 1«M the groups hegm with the even hundred, .. foUows: mZ~, ^. '^u.2^, .^. 

The majority of the societies are found to be very smaU. In 1894 
54.26 per cent had not over 100 membe,^. In 1904 52 11 per cent 

to SsTd 18 irV^ *^ar "T'"'^' ''■'' P- cent fromToo 
hJTa^ t P^' "^""^ ^^ membeiB or over. Only 49 societies 

cation of aTr? "' °"T '' '' ^^^^ '^'^ »^«- d" any appS 
cation of actuanal prmciples would be in such small societies 

soctti^TmTsh ""'^ *^ incoT>orated and unincoT,orated 
societies in 1904 shows a very mteresting difference in distribution 
by size of membership. Societies with less than Ton ™1 k. 
constituted 39.02 per cent of the incorporated and 56 17 per cenf o" 
m ~°r-*«d -r*-^ those ^th a membeiilp^: Z to 
199, 32 11 per cent and 24.68 per cent; those with 200 to 999 26 1^ 

TLTr '"'1 ''•'/ P^' '^'''' ^""^ t'^"- -itl^ I'OOO members and over 
Sren irof tT '*'^?''' '''''■ '^^ ?"* '"^^ comparison someX; 
ver^^tl: '*"'^*'^ "^^ * membei^hip of Ls than 100 17 7 

28 87er IZ ■'^?r'"^l^' *'^''" V'"" * membei^hip of 100 to 99! 
cent; of those wLr,^.K \"'«-'--'^P «* 200 to 499, 34.8 pe; 
of those with iT,nn ""T^'^'T ^^ ^00 to 999, 34.4 per cent; ^d 
rated TTetonCcvr'^ and over, 38.8 per cent were inc^rpo- 
stronger tZS::^ZZ£ '^''' ''' ^^ ''' evidently mu'ch 






1840 



REPORT OF THE COMMISSIONER OF LABOR. 
OCCUPATIONS OF MEMBERS. 



Satisfactory data are unfortunately lacking concerning the occu- 
pations of Italian workmen belonging to the mutual benefit 
societies. In the following table is shown all the information avail- 
able on this subject. The classification here is that of the societies 
rather than members, and the large majority of the societies, 61.05 
per cent in 1894, are unclassified. Besides, no similar data are 
available for the last census year, 1904. Some temlency toward 
differentiation may be noticed in this table. In 1878 81.30 per cent 
of all societies, and in 1894 only 61.05 per cent were unclassified as 
far as the occupations of their members is concerned. In 1885 66.13 
per cent of all membership of mutual benefit societies were unclassi- 
fied as to occupation, and in 1894 58.50 ])er cent. 

OCCUPATIONS OF MEMBERS OF MUTUAL BENEFIT SOCIETIES, 1878, 1885, AND 1894. 
[Source: La Societk dl Mutuo Soccorso, 1878, 1885, and 1894.] 



Occupation group. 



Unclassified workmen 

Steam railroad employees 

Farmers and industrial workers. 

Veterans, retired army men, etc. 

Farmers and laborers 

Public and private employees. . . 

Merchants, clerks, travelingmen, 
etc 

Mechanics, metal casters, black- 
smiths, etc 

Teachers 

Workmen in food industry. ..... 

Shoemakers, hatters, tailors, 
saddlers, etc 

Textile operatives 

Boatmen , fishermen, and sailors . 

Printing trades 

Masons, marble workers, stone- 
cutters, etc 

Servants, coachmen, etc ] . 

Musicians and theater employees 

Woodworkers 

Tobacco workers [ 

Porters, loaders and unloaders, 
etc ;. 

Tanners, glove makers, etc . .' ." .' .' '. 

Barbers, hairdressers, etc 

Hackmen and street-raib-oad em- 
ployees 

Physicians, surgeons, pharma- 
cists, veterinarians, sanitary 
employees, etc 

Vamishers, painters, plasterere, 
decorators, etc 

Coflee-house keepers, liquor deal- 
ers, bakers, and confectioners. . 

Clergymen 

Potters, glass workers, etc. ...... 

Ushers , watchmen , and servants. 

Goldsmiths, jewelers, and watch- 
makers 

Miners '.'.'.'.'.'.'.'. 

All other professions and trades . '. 



Mutual benefit societies in- 



1878. 



Num- 
ber. 



1,700 



Per 
cent. 



81.30 



28 
13 

20 

13 
12 
40 

50 

22 

7 

22 

24 

34 
20 
18 



Total 2,091 100.00 4,817 



10 
16 



10 

8 



L34 
.62 

.96 

.62 

.58 

1.91 

2.39 

1.05 

.34 

1.05 

1.15 

1.62 

.96 

.86 



1888. 



Num- 
ber. 



8 



.48 
.77 

.19 



.48 
,38 



.19 
.24 



.38 

'14' 



2,940 

7 

564 

225 

142 

18 

66 

37 
21 

74 

129 
29 
39 
36 

63 
34 
17 
50 
4 

20 
25 
36 

15 



13 

30 

14 

4 

11 



Per 
cent. 



19 
"i35 



61.03 

.15 

n.71 

4.67 

2.95 

.37 

1.37 

.77 

.44 

L54 

2.68 
.60 
.81 
.75 

1.31 
.71 
.35 

1.04 
.08 

.41 
.52 
.75 

.31 

.27 

.62 

.29 

-.08 

.23 



Membership. 



Num- 
ber. 



.39 



489,556 

4,192 

60,026 

36,276 

20,309 

4,764 

10,137 

6,161 
8,373 
8,611 

9,449 
6,059 
5,463 
4,838 

7.624 
4,558 
2,240 
4,891 
2,164 

1,967 
3.310 

2,585 

2,721 



1,594 

2,415 

1,726 
1,603 
1,413 



Per 
cent. 



1894. 



Num 
ber. 



1,795 



2.80 15,460 



100.00 



740,280 



66.13 

.57 

9.32 

4.90 

2.74 

.64 

1.36 

.70 
L13 
1.16 

1.28 
.82 
.74 
.65 

1.03 
.62 
.30 
.66 
.29 

.27 
.45 
.35 

.37 



.22 

.33 

.23 
.22 
.19 



.24 



2.09 



100.00 



4,021 

29 

701 

410 

241 

56 

59 

75 
36 
92 

143 
33 
55 
50 

78 
37 
43 
64 
11 

39 
32 
43 

25 



30 

22 

18 

5 

12 

14 

16 

8 

89 



6,587 



Per 
cent. 



61.05 

.44 

10.64 

6.22 

3.66 

.85 

.90 

1.14 

.55 

1.40 

2.17 
.50 
.84 
.76 

1.18 
.56 
.65 
.97 
.17 

• ow 
.49 
.65 

.38 



.46 

.33 

.27 
.08 
.18 
.21 

.24 

.12 

1.35 



Membership. 



100.00 



Num- 
ber. 



581,609 
87,087 
84,526 
54,292 
29,526 
14,300 

14,102 

11,350 
10,652 
10,346 

9,260 
8,177 
7,746 
7,384 

7,222 
5,118 
4,274 
4,184 
4.173 

4.018 
3,626 
3.678 

3,534 



3,213 

1,935 

1,852 
1,588 
1,628 
1,435 

1,155 

641 

10,862 



Per 
cent. 



58.50 
8. 76 
8.50 
5.46 
2 97 
1.44 

1.42 

1.14 
1.07 
1.04 

.93 
.82 

.78 
.74 

.73 
.52 
.43 
.42 
.42 

.40 
..'17 
.36 

.36 



.32 

.20 

.19 
.16 
.16 
.14 

.12 

.05 

1.09 



994,183 



100.00 



CHAPTEE VII.-WOEKMEX 's I^SUEANCE m ITALY. 1841 

™^« O^ 0««ANrZATION AND OF INCORPORATION 

YEAR OF ORGANIZATION OF MUTUAL BENEFIT SOCIKTIES 

_J^^;^;;^^^^;esoc^ ' '^^■ 



Mutual benefit societies in existence at end of year. 



Year of organization. 




Prior to 1850 
1850 to 1859 
1860 to 1869 
1870 to 1874 
1875 to 1879 
1880 to 1884 
1885 to 1889 
1890 to 1894 

1895 to 1899 

1900.... 

1901 ;: 

1902 

1903 

1904 

Unknown. 



« Organized 1850 to I860. 
6 Orgamzed 1861 to 1870 



« Organized 1871 to 1875. 
* Organized 1876 to 1879. 



ThA foKl^ 1 ,, ■ ''Organized 1876 to 1879: 

1904 are particularly SeriLTCr."^ '^' ^^"'^ °* ^894 and 

those t^S :heirr%To~:in ''''' '''^'' ^^ ^^"^^^ 
organized before 1895 But fh« n* T °°* '•«P°rted, had been 
eties (exclusive of thetl^reTrlirolTZf. 1894 showed 6,722 soci- 
- 25.3 per cent, of the societt tve bten'dV 1' T^'"''^ ^'^««' 
in lo94 and 2,917 in 7004 u • . A»y4, 4,153 were m exisfpn^A 

29.8 per cent,' werrdSvfd"""' *'^' '^""'"^ ^^^ *- ye.rs7SZl 

4^ It is desired to show here tho ^ffi • 
registration (incorporation) of the h°fif ''^ '^^ '*^ ^°' ^'olunUry 
tab esuppliessomeinformation Jtn J "if * '°^'^*'^' *^»« foUowing 
of this right of incorporatTon C ° eTL f ^%' '^'' '""''''^ '"^^^^ "«« 
IS greater among tl.; older societies «n<?"^^'''"''"^P*''-*t«dsocieties 
not at the time of organizat^nSr? incorporation evidently comes 
In any ca.e incorporaS proceed «T "* " 'f ''^'"^"^ the society, 
number of societies ineorporlSn * very slow rate, the highest 

orporatmg m one year being 149 in 1891 



! 



•rj?' 



1842 



REPORT OF THE COMMISSIONER OF LABOR. 



NUMBER OF MUTUAL BENEFIT SOCIETIES ON DECEMBER 31, 1904, BY YEAR OF 

INCORPORATION. 

[Source: Le Society dl Mutuo Soc^orso, 1904.J 



Year. 



188G.... 
1887.... 
1888..., 

l0O*7 . . • . 

1890.... 
1891.... 
1892..., 



Number of 
societies in- 
corporated 



78 
107 
100 
99 
98 
149 
110 



Year. 



1893. 
1894. 
1895. 
189G. 
1897. 
1898. 
1899. 



Number of 
socieliesin- 
cori>o rated 



88 
72 
46 
58 
67 
53 
51 



Year. 



1900 

1901 

1902 

1904 

Total. 



Number of 
societies In- 
corporated. 



59 
67 
66 
74 
64 



al,fi06 



a Not including 42 societies incorporated by royal decree, years not reported. 
CHANGES IN MEMBERSHIP. 

The list of the societies is not very stable from year to year, many 
societies dissolving and others being formed ; there is also a considerable 
degree of change in the membership of these societies. In the follow- 
ing statement the gain and loss in membership is shown for 1885 and 
1903. Unfortunately the data for 1885 are for all societies and for 
1903 only for incorporated societies, the data concerning the member- 
ship of the unincorporated societies in 1903 not being available. For 
this reason no satisfactory comparison of the data for the two years 
can be made. The incorporated societies are usually laiger, stronger, 
and probably subject to fewer changes in membership than those 
which are not incorporated. 

The changes of membership in 1885 among all mutual beneiit 
societies were as follows: 

Number of societies reporting 3^ 705 

Effective members at beginning of year 535, l8x 

Members admitted during year 88, 935 

Per cent of members at beginning of year 16. 6 

Members lost during year 57, 216 

Per cent of members at beginning of year 10. 7 

Net gain during year 31, 7 19 

Per cent of members at beginning of year 5, 9 

Total effective members at close of year 566, 900 

In 1903 the changes of membership in the incorporated societies 
were as follows: 

Number of societies reporting i, 412 

Effective members at beginning of year 258, 346 

Members admitted during year 19, 842 

Per cent of members at beginning of year 7.7 

Members lost during year 18 274 

Per cent of members at beginning of year '. 7. 1 

Net gain during year 1, 568 

Per cent of members at beginning of year .6 

Total effective members at close of year 259, 914 

As is shown by the next table, the loss of membership is mainly 
due to failure in payment of dues. In the incorporated societies 
out of a total loss of 18,274 members in 1903, 10,916, or nearly 60 per 
cent, were dropped for that reason. 



CHAPTEB VII.-W0KKMKK'S XKSHIUKeE IK X.^.. 1543 

LOSS *F EFFECTIVE MEMBERSHIP n,TR,„„ , 

(Source: Le Sodet4 dl Mutao Socco,«, 1904.] 



Cause of loss. 



Kt I t> Loss per 100 

Number lost. \^^ <*nt of j membe 



Death... 

Withdrawal:: 

mfc"^''^ *" payment ofdues' 

Other causes 

Total 



total loss; I tepin^SI' 
of year. 



3,981 

2,220 

10,916 

1,157 




21.8 


LS 


12.2 


.0 
4.2 

.5 


59L7 

as 



BENEFITS. 

relief. In 1885, 99.4 pi^eni:^ ^^ T^'« ^ granLg'Jck 
were granting such relief. Societies orL«' T^ "? ^^°^' ^^'^ P^"" <=ent 
mutual relief other than sick bSt/iHtr'™'^ '**' ''^^ <^ 
though somewhat more common now tZ tt ! '^ ^^'^ exceptional, 
addition to sick benefits a ve^We „,iK *^f ^^.y^*^"^ ago. But ii^ 
otherf orms of relief, which SoTin Z/n*"^ '°"''*'^^ ^"™^' "^any 

^^''^"T AT END OP Ve!kS^^,'^S!"=^ ''-"''^° EACH lONI, OF 
[Source: Le SocieU dl Mntao Soceom, 1885 ,1 t ' '^' ^'^''^ '*«• 



Kind Of benefit. 



^^^'' 31 jDecember 31, 
^^^ ' 1894. 



necember 31, 1904. 



Incorporated 
societies. 



Num- 
ber 
of so- 
cieties 



Unincor- 
porated 
societies. 



Total. 



Sickbenents.. 

Contmuo^ benefite or I,eIisVom:• 



3, 739 99. 4 I (a) 

Chronic diseases j J. 545 41. i 62, 256 

Invalidity dueto-iidusWai-at^ilV'^^ 47.9 (c) 



dents 

Rfn JJ1° ^'<^ows and oroh^ 

oingle pajTnents : ^"**^ 

Old age 

Chronic diseases 

^d\^te(%^"^^'*°<i^trial-aoci. 

\r^4^° .widows and orohans I , ^^ 

Hatermty benefits and fo?^,Vr;L;- " " M' ^^^ 
Funeral benefits nursmg. . 

Unemployment tenefite" 

Loans to membe'rs" 

Cooperative stores.". 

'"laS^^^-^'oVnienibe^ 



Societies finding kmk\:. 

unemnlova^ ™l^?Ployment for 



(«) 

unemployed mmb^re"^™^* '°^ I ^"^ 
Hm:;;;— I («) 

» Not reported IT T"^ ' 

^IncludSd in oid-a^e \^^?^ benefits 



-age benefits 




'"o? <Sa'"^& SSf A"/&- -" orpt^. 



f 



1844 



REPORT OF THE COMMISSIONER OF LABOR. 



CHAPTER VII.— workmen's INSURANCE 



1 



It 



ii 



i 



9 

Though these other forms of relief are not altogether germane to 
the subject of sickness insurance, they are interesting, nevertheless, 
as characterizing the tendencies of voluntary mutual relief. These 
other forms of relief or other functions of the mutual benefit societies 

are very varied. 

In addition to the main function of the mutual benefit societies, 
that of furnishing sick benefits, funeral benefits evidently constituted 
the most frequent feature, as nearly one-half of all enumerated 
societies furnished this form of assistance. Less common are the 
various forms of continuous payments in case of old age and iriva- 
Udity, the payments which approach a system of pensions and for 
wliich, as was explained above, the mutual benefit societies are seldom 
prepared financially. About one-fourth of all societies in 1904 
granted aid in form of continuous payments in case of old age, and 
nearly one-third in case of chronic diseases, which may be taken as 
an equivalent of invalidity. During the last twenty years, the pro- 
portion of societies granting such quasi pensions has considerably 
decreased (from 41.1 per cent to 24.8 per cent for old age, and from 
47.9 to 30.1 per cent for invahdity). Similarly, the granting of con- 
tinuous benefits in case of invalidity due to industrial accidents is a 
function which is being slowly eliminated (if the reports of 1885 and 
1904 are compared) under the influence of the law of 1898. In many 
societies single-payment benefits are granted in case of old age or 
invalidity instead of continuous payments. 

The same change from pensions or pension-like payments to lump- 
sum payments is found in relation to widows and orphans, the num- 
ber of societies promising widows pensions having decreased from 520 
to 292, while the number of those giving single-payment benefits has 
increased from 1,176 to 1,897. In view of the special interest dis- 
played in Italy in the problem of maternity aid, it is interesting to 
observe that only about 10 per cent of the societies granted such aid 
in 1885, and that by 1904 the proportion had decreased to 8.8 per 
cent. On the other hand there has been a sHght increase in the 
granting of unemployment benefits. Unfortunately there is very 
little information to be obtained as to the amount of aid granted under 
these many forms. Still less information is there in connection with 
other forms of activities of these mutual benefit societies, outside of 
the field of benefits for temporary or permanent disabihty, such as 
the cooperative and educational efforts. 

The statistics of 1894, quite deficient in other respects, give more 
information about these secondary activities than do those of other 
years. There is, therefore, no way of gauging the growth of coopera- 
tive stores, schools, or employment offices supported by these mutual 

benefit societies. 

A comparison of the data for incorporated and unincorporated 
societies for 1904 indicates that the secondary functions are more 



IN ITALY. 



1845 



frequent among the former, stronger societies «nH fhof • 

represented. This is especially true, as appeare from the table fo^ 
old-age, chromc-disease, and invalidity benefits ' 

of wfilTaTbrfhU'Lt'itif ? *'^' r* ^^-'- ^-- 

detailed anaVsis/TL^^rttt r^^^^^^^^^ -- 

rSource: La Society di Mutuo Soccorso, 1904. ' 



ConsUtutional limit as to time. 



Number 

of 
societies 
granting 
relief un- 
der con- 
ditions 
specified 



Per 
cent 

of 
total. 



Data are for 1,377 socieUes.] 



Constitutional limit as to amount 
of benefits. 



HME RKQT7IEED TO ELAPSE BEFORE 
TITLE TO SICK BENEFITS IS ESTAB- 
LISHED. 



From beginning of membership: 

1 to 12 "months! '. 

13 to 24 months 

Over 24 months 

Indefinite .* 

From b^inning of illness: 

None 

1 to 3 days..!... 

4 to 10 days .'. 

Over 10 days 

Indefinite '.\ " 

Maximum duration'of benefits': 
60 days and under. 

From 61 to 120 days 

From 121 to 180 days 

Over 180 days 

Unlimited.. 

Indefinite.. 



45 

1,046 

146 

120 

20 

338 

831 

156 

12 

40 

309 
455 
245 

65 
207 

96 



3.3 

76.0 

10.6 

8.7 

1.4 

24.5 

60.4 

11.3 

4.9 

2.9 

22.4 
33.1 
17.8 

4.7 
15.0 

7.0 



AMOUNT OF DAILY BENEFITS. 

Fixed: 

1 lira (10.193) and under 

,. .Over 1 lira (10.193) " " 

vanable maximums: " ' 
1 lira ($0,193) and under 
Over 1 lira ($0,193)... "" 
Indefinite. 



^^^^^^ ^^ *^^S^ OF INDUSTBIAL 
ACCIDENTS RESULTING IN— 

Temporary disability: 

Stolss*^ ^^"^ '^^ °'^^^^ 
I^th^-those forordiiir^- 

Permanftnt disability: 

Determined by by-laws 
Death!* determined Uy by-la;^.:; 

Determined by by-laws .... 
Not determmed by by-laws. 



Number 




of 




societies 


Per 


granting 


cent 


relief un- 


of 


der con- 


totaL 


ditions 




specified. 




512 


37.2 


60 


5.0 


477 


34.6 


217 


15.8 


102 


7.4 


823 


50.8 


142 


10.3 


188 


13.7 


354 


25.7 


285 


20.7 


m 


13.0 



^^^^l ^Jr'^^'^r^ZL'^'''''- '^f' -^^ --bership before 
societies this limTtTs from 1 ^.w ''T'"'^- ^"^ ^« P«^ ^^^^ of the 

minimum meSe^Lp Tui^ation th^e T*'" '° ^'^^'^'^ '^ »'- 
period at the beginnin/of UW° f . u f "" "''*"* '^^^^^ * ^^^tain 
this is not very W fjl , t % / ''^'!'^ ^^^^^^^ are not paid, but 
eties, and in about^'e^f^rtl Th u^^l " ^"^ ^^' ^^'^t «* t^e soci- 
of illness. O'^^fourth the benefits are paid from the beginning 

beS. 'fn'mloZL^'^" \*^'°"'^ ""^^^ ^'' P^y^'^i of the 
-ost frequent limirirerm Tto ro^^^^^T' '^'^^ ^^*^- ^he 
societies paying benefits for 7l,; V /^'' *''**"* one-third of the 

days and Sr. Thf lmou„t TJ 'f** '^ '"' *^^^ "''^"'^ i« ^ 
cent of these societies do^r„ri /f^r^ *'"'^'^* P"'! »>y 71.8 per 
per cent of them pay ot^ rt^olenSVe" Z^ " "^ ^^^^^ ^^ 



1 



1846 



EEPORT OF THE COMMISSIONER OF LABOR. 



In case of industrial accidents, most societies grant benefits equal 
to those for ordinary sickness. 

The number of members of mutual benefit societies who received 
sick benefits and the number of days for which benefits were paid are 
shown in the following table for the years 1873, 1878, 1885, and 1903. 
The data for 1903 are for the incorporated societies only and include 
69,029 cases of illness, an average of 29.1 cases per 100 members. 
These societies paid out $265,295 as sick benefits during the year 1903, 
an average of $1.09 per member, $3.84 per case of illness, and $4.32 
per member receiving benefits. 

NUMBER OF PERSONS RECEIVING SICK BENEFITS AND NUMBER OF DAYS FOR 
WHICH BENEFITS WERE PAID, 1873, 1878, 1885, AND 1908. 

[Source: Le Society di Mutuo Soccorao, 1878, 1885, and 1904.] 



Year. 



1873 
1878 
1885 
1903 



Number receiving bene- 
fits during year. 



Number of days for which benefits were paid. 



Toted. 



45,786 

67,229 

104,386 

659,258 



PerlOO 
members. 



24.35 

23.26 

22.55 

625.00 



Total. 



984,539 

1,612,216 

2,102,881 

61,293,923 



Per 

member. 



5.24 

5.23 

4.54 

65.52 



Per case 
of lUness. 



ffi 



618.7 



Per member 
receiving 
benefits. 



21.5 

22.5 

20.1 

622.0 



a Not reported. 



6*Data are for incorporated societies only. 
FINANCIAL STATISTICS. 



The report for 1895 does not contain any statement concerning the 
financial status of the mutual benefit societies, and for 1862 the data 
are quite incomplete and therefore of little value. For the remaining 
years for which reports were made the data are reprodu(;ed in the few 
tables which follow. Not all societies furnished financial statements, 
but the number of societies which did furnish them is sufficiently 
large to make the data representative, if not accurate as to totals. 

During the period of 31 years the proportion of revenue received 
from each source has not changed very much, though the total income 
has increased from $619,110 in 1873 to $2,804,758 in 1904. The regu- 
lar contributions of the active members still represent by far the 
most important source of revenue, nearly two- thirds of the total. 
Voluntary contributions and dues of honorary members, which also 
partake of the nature of a voluntary assistance, increased about 4 per 
cent between 1885 and 1904. The remainder of the revenue is derived 
from investments and business enterprises, and this has not changed 
much, amounting to about 30 per cent of the total. In 1904 a consid- 
erable difference is found in the per cent of revenue from each source 
in the incorporated and unincorporated societies. The income from 
other sources, which includes income from investments, constitutes 
37.8 per cent of the total revenues of incorporated societies, while in 
the case of the unincorporated societies this income amounts to 23.4 
per cent of the total. 



H 



CHAPTEB Vn.— WOBKMEn'S INSUBANCE IN ITALY. 1847 

REVENUE OF THE MUTUAL BENEFIT SOCIETIES, 1873, 1878, 1885, AND 1904. 
[Som-ce: Le Society dl Mutuo Soccorso.l88S and 1904 Data or« r^r. i m, • *i . 

and 3,566 in IS^ffor mifhe n£Slfer"'noI iporST''"" ' ''^ "^ ''"^ 



Year. 



Income from — 



Investments. 



Contributions of 
active members. 



1873. 
1878. 
1885. 



Amount 



Per 
cent 

of 
total, 



1904: 



Incorporated societies. 
Unincorporated soci- 
eties 



Total, 1904. 



f 118, 142 
195,630 
278,040 






19.1 
19.6 
19.0 



Voluntary con- 
tributions and 
dues of honor- 
ary meml)6rs. 



Amount. 



(«) 



$425,590 
644-308 
970,089 



633,491 
1,141,791 



Per 
cent 

of 
total. 



Amoimt 



Per 
cent 

of 
total 



Other sources. 



1,775,282 



68.7 
64.5 
66.4 



53.7 
70.3 



6a3 



128,252 
36,500 
47,730 



99,984 
102,727 



202,711 



4.6 

a6 

3.3 



8.5 
6.3 



Per 

Amount **^* 
of 

total. 



Total 
income. 



7.2 



S47,126 i 7.6 
123,171 ! 12.3 
164,404 11.3 

* 446,065 ' 37.8 
*380,700 23.4 



$619,110 

999,609 

1,460,263 

1,179,540 
1,625,218 



*826,765 29.5 i 2,804,758 



a Included in income from other sources. 6 including Income from In v^^;;^;s^ 

For the year 1903 more detailed information as to the various 
socTeties ""'" " '""'^''''^ '"' '' ^^'"^^^ ^^^ ^^^ incorporated 

namelf S^^/oir^'"'"''' amounting to $1,542,275, over one-third, 
namely $531,045, represents gross revenues of the cooperative stored 
and other enterprises. It is impossible from the data avallaSe T 
determine what proportion of these gross revenues represented profit 

REVENUE OF INCORPORATED MUTUAL BENEFIT SOCIETIES IN 19(B. 
[Source: Le Society dl Mutuo Soocorso, 1904.] 



Soimie of Income. 



Real estate. 
Interest 



Amount. 



Total capital revenues. 



Ton JriK"J-°"^ ""^ ^*»^e members 
Contributions of honorary membere," etc." 



Total contributions of members. 

Gross revenues from: 
Cooperative stores 
Other enterprises " . " " 

Tp^f ^°.^.^ ^°^ revenues . . 
ij-xtraordmary revenues 



$25,996 
264,292 



Grand total. 



290,288 

595, 337 
15,231 



610,568 



Pw 

cent of 
total. 



1.7 
17.1 

1&8 
LO 



425,385 
105,661 



39.6 



27.5 
6.9 



531.046 
110,372 



34 4 
7.2 



1,542,274 1 loao 



deUUfrilrf 1878 ldl8?5 *"^H ''r'^ T^^^^^^^^^^^^^ 

for 1903. For 1904 o„^^ thf/ T, ^^"° ''l *''" '«<=«T«'-''ted societies 

cost of adnuistration ^ the total expenditures for benefits and the 

677250 ™!r V ^^ ^^" '" "**'^^ expenditures, are 



1848 



REPORT OF THE COMMISSIONER OF LABOR. 



given. Comparisons for the later' year are therefore somewhat 
unsatisfactory. The expenditures for the years 1873, 1878, 1885, and 
1904 were as follows: 

EXPENDITURES OF MUTUAL BENEFIT SOCIETIES, 1873, 1878, 1885, AND 1904. 

ISource: Le Soeletii dl Mutuo Soccorso, 1885 and 1904. Data are for 1,103 societi«s in 1873, 1,901 in 1878, 

and 3,602 in 1885; for 1904 the numt)er is not reported.] 





Expenditures for— 




Year. 


Benefits. 


Administration. 


All other purposes. 


Total. 


/ 


Amount. 


Per 

cent of 

totAl. 


Amount. 


Per 

cent of 

total. 


Amount. 


Per 

cent of 

total. 




1873 


$260,463 
492,356 
688,551 


643 
71.5 
6&0 


$67,338 
122.210 
268,763 


16.6 
17.8 
25.8 


$77,294 
73,574 
85,697 


19.1 

10.7 

8.2 


$404,995 

688,140 

1,043,011 


1878 


1885 


1904: 


Incorporated societies 

Unincorporated societies.. 


566,127 
876,017 


60.2 
65.6 


o 373, 769 
a 459, 573 


39.8 
034.4 






939,886 
1,335,590 


Total, 1904 


1, 442, 144 


63.4 


o 833, 332 


36.6 


W 


W 


2,276,476 





a Including expenditures for all other purposes. b Included in expenditures for administration. 

The comparative importance of the various forms of mutual benefit 
is shown in the following table, but unfortunately the data for 1903 
do not include any but the incorporated societies. It is therefore 
somewhat difficult to tell what the tendency was <luring the last 
twenty years. Up to 1885 the payment of sick benefits was by far the 
most important function of these societies. In 1903 the incoipo- 
rated societies spent for sick benefits, inclusive of medical and pharma- 
ceutical help, a little more than one-half of their total expenditure for 
relief. 

EXPENDITURES OF THE MUTUAL BENEFIT SOCIETIES FOR BENEFITS, BY KIND OF 

BENEFITS, 1873, 1878, 1885, AND 1903. 

[Source: Le Societk di Mutuo Soccorso, 1873, 1878, 1885, and 1904.] 



Kind of benefits. 



Sick benefits 

Physicians and medicine 

Funeral expenses 

To families of defunct meml>as. 

Permanent disability 

Superannuation 

Unemployment 

other 



Total. 



1873. 



Amount. 



$191,301 

25,564 

5,346 

9,499 

620,404 

(«) 
8,349 



260,463 



Per 

cent 

of 

total. 



73.4 
9.8 
2.1 
3.7 

6 7.8 

(^) 
3.2 



100.0 



1878. 



Amount. 



$304,753 

37,154 

8,782 

21,140 

6 114, 130 

(^) 
6,397 



492,366 



Per 

cent 

of 

total. 



61.9 

7.5 

1.8 

4.3 

6 23.2 

(0 
1.3 



100.0 



1885. 



Amount. 



a$427.450 
59,493 
24,513 
12,102 

6135,027 

6,328 
23,638 



688,551 



Per 

c«nt 

of 

total. 



62.1 

8.6 

3.6 

1.8 

6 19.6 

(«) 
.9 
3.4 



100.0 



1903 (incorpo- 
rated societies 
only). 



Amount. 



$266, 656 
41,306 
10,287 
35,933 
60,309 
149,011 

18,349 



^81,851 



Per 

cent 

of 

total. 



45.8 

7.1 

1.8 

6.2 

10.4 

25.6 



3.1 



100.0 



a Including $6,743 for temporary disability and $2,737 for maternity benefits and nursing. 

6 Including superannuation benefits. 

c Included in permanent disability benefits. 

d Not reported. 



CHAPTEE VII.— workmen's INSUEANCE IN ITALY. 1849 

The total assets of the societies, and also the average assets „er 
society and per member, are shown in the foUowing table for the vlri- 
ous years reported. There is seen to have been an almost constant 
growth not only m the total assets, but in the average assets per S 
ety and per member. The average assets of the incorporated ESs 
are more than three times that of the unincoT,orated sTcietie^ Thtb 

Zll f /I"'"'^ ^^ *^" *"'^"'' "'^'^be.^hip in the incorporated socll 
Ues, but the average assets per member are also considerably lai^er^ 
more than twice as much. ^ larger 

ASSETS OF THE MUTITAL BENEFIT SOCIETIES. 1873, ,878. 1885, and 190.. 
[Source: Le Society di Mutuo Soccorso iSRiianH lorv* t^ * 

.a 188=, and l.STS^^'^iMTnS^^^^^di^t'^^l^^i^'f^ >- 1^. 3,=» 



Year. 



1873 

1878..... 

1886 :;;;;::; 

1904: 

Incorporated societies . 
Unincorporated societies 

Total, 130-1 



Total 
assets. 



Average 

per 
society. 



Average 

per 
member. 



$1,806,013 
4,080.341 
6,214,762 

7,114,285 
6,858,055 



13,972,340 



$1,648 
2,093 
1,766 

4,684 
1,522 



$8.56 
12.45 
11.72 

24.77 
11.61 



2,319 



15.92 



The next table shows for 1904 the distribution of both incorporated 
and unincoiporated societies by the amount of assets Sr oS 
half of the societies (54.08 per cent) ar« found to own less thin $96^ 
about one-third of the societie-s dd no ^^^ *^ i. *^°^' 

and under S9,650, and 0^3 63 pe" cen T^n ^^ITZ'^ '' *''' 
data being available for th!reZi^^T2Zo^t T^f^-r"' "" 

....„ „ „. .„„„ .„„„ ,^^^ ^^ __^_^_^_^ __ ^^ ^^ ^_^__^^ 

[Source: Le Society di Mutuo Soccorso, 1904.] 



Amount of assets 



All societies. 



Under$193(l,0001ire) 
$19J and under $965.. 
»y<)6and mider$l 93o 

1?^^^°^^"°^®'' $19,300. 
J!^',??^J°d under $48,250 

$9fi,500 to $193,000 

Over $193,000....::: 

Not reported.. 

Total 




1850 



EEPOBT OF THE COMMISSIONER OF LABOR. 
PEOPOSED BEFOM OF ITOTTJAL BENEFIT SOCIETIBS. 



Onlv a very smaU proportion of the workmen of Italy were able 
to^ot tie eiting voluntary societies in which the ent^e bu^Jn o 
the cost of insurance falls upon their own resources. I" J^'^Jhe 
Counca of Providence and Social Insurance appomted a special corn- 
Son for the study of necessary reforms in the status of the mutua 
benefit societies. After over a year of work the commission reported 
a bill for estabhshing a system of government subsidies to sickness 
Lurance societies. The fact that the proposal of this special com- 
Son received the approval of the whole councd makes this plan a 

matter of considerable importance. ', • , • . „„,„^ ,« « 

The main provisions of the proposed plan, which is to serve as a 
substLte for the old act of 1886, are a^ follows: In addition to the 
nonre^tered societies and those registered under the new aw, there 
fs to be created a third group of so-called authorized so^eties^ The 
requirements for registration are practically left unchanged. But for 
Shorization the requirements are considerably -<>- «t-g-J^ 
The societies must be of a certain size, namely, not i<^th^^ 200 
active members (the statistics quoted on page 1839 -towed that l^s 
than on^fif th of the societies had the necessary membei-slup) . Thoy 
must grant a certain minimum of benefits, namely, (1 aJl necessary 
med cS and surgical aid from the very first fay of sickn-s^d a 
least for six months; (2) a sick benefit of at least 1 lura (19.3 cent.) 
ne7day for adults, and of one-half lira (9.7 cents) for children 16 
yeai^ and under, frU the fourth day of sickness till the end of hree 
moTths and at least Qne-half that amount for the succeeding three 
months Special provision is made for maternity benefits, which m 
^ew of the recent act establishing compulsory matermty msurance for 
working women, is now of minor importance. This matermty beneBt 

must cList of 'a daily benefit of rK"?J\';Vtud The dues o' 
Havs Dart of which may precede the birth of the child. The dues ol 
?h2 authorized societfes'must be computed with conside'a.^n for 
the special needs, but must not be less than one hra (19.3 cents) ,>er 
month In add tion to individual mutual benefit societies, federa. 
Sons of such societies are permitted, both in the registered group 
a^d in the authorized group. The recognition as well ^ authoriza. 
Si" left to the minister of agriculture, industry and commerce, 
and the authorized societies are to be subjected to stncter supervision 

of the Government. ^ n • n^ 

The object of this authorization is to provide a group of ^^^7 
sound and carefully supervised mutual benefit societies, to -hich su^ 
stantial subsidy is to be granted by the f t^^'^'^l, ^^^^^^^ J^'J^ 
purpose a special amiual appropriation of two miUion hre (»386,000) 
walpropos^d. This fund is to be divided among aU the authorized 
benefit societies in proportion to their membership. The system pro- 



i 



CHAPTEB VII.— workmen's INSURANCE IN ITALY. 1851 

posed is to include additional subsidies for invalidity insurance in the 
foUowing way: Each member of the authorized mutuaZnrt so^iet^ 
who IS insured in the National Old-Age and Invalidity wlnceTrLtf 
tution IS to count as two in this distribution, and oL one share ? to 
go to his society, and the other to his private account i^ the ofd agl 
msurance fund. Mor^ver, another substantial benefit ku>T> 
extended to these authorized mutual benefit societies. TheLtional 

a cei^aVi rf *^ '^""''''^ ''"*^*"*'«'' ^ pennittJto t^t 
a central institute for sickness insurance, and to enter into aereement. 

with authorized benefit funds, or federations of such blefiSrto 

msure their members a continuation of the sick benefit o oThaW 

dtaSonTSk^rr ''' '^°™^' '^* «^ ^^ -^ ^- ^^^'^ 

KATBBNITY mSTTBAKCE. 

While the general condition of sickness insurance in Italy is stiU 
very unsatisfactory, since only a smaU proportion of the w^rS 
population enjoys the benefits of such insurance and the Stlte^ 
done very httle except provide conditions of incorporation a ver^ 
strong and very mteresting movement toward compu^ry in^™ In 
at least one branch of sickness insuraiice, was sta^rted Z uZZtiZ 
the last decade-that of maternity insurance, which very reSnS 
was successful in accomplishing this result. ^ recently 

By "matermty insurance" is meant insurance of medical or finan 
c'SidSr^^ *° *'' ""*'" '"' ' *^^^ P^-'l befort^Jd^fte; 

The theoretical question may be raised whether such a form of 
msurance may properly be considered a branch of sickn^s LurTnc/ 

2. ,hkM .^' "^ ^r*' ""^^^^ ^''d fi^*°"'^I assistance in c^e of 
childbirth IS often rendered, usuaUy in comiection with generaTsXi 
insurance mstitutions. This is the case not only in L compu W 
system of sickness msurance in Gennany, but also L the volSyS- 
ness insurance mstitutions of Italy. But it is the insufficiency of the 
voluntary system of sickness insurance, its failure to includeTll thote 
who are m need of it, and the evidence of the special urgency of t eh 
msurance for a working woman during childbLh, thaf cr/ati tS 
movement for maternity insurance in Xly. It is Wry LteJLtiL to 

«r^si on" *'L"''°^'' ^' *'^ P^''^^ °^ *»^« internal r?o^ 
gresses on workmen's insurance aU the reports and discussions on 
matermty insurance were furnished by iLian delegates~the 
Itahan legislative work in comiection with that problem be^rsteonJ 
evidence of the influence of these reports ^ 

The information obtainable from the sLx censuses of Italian mutual 
benefit societies concerning their activity in maternity iZr^nclk 
somewhat meager. Wliile it shows a rather rapid growtH never^ 
theless demonstrates the very limited extent of such relief E 






1852 CHAPTEB VII.— WOEKMBN's INSURANCE IN ITAI.Y. 

censuses of 1862, 1873, and 1878, unfortunately, do not show thk 
;~ at all, c;mbining it probably with ot^ Jor^-f s.k b^^^^^^^ 
fitc. The census of 1894 contains no financial data. Thus only a com 
farisolbetween 1885 and 1904 is possible; and -n f^/h- ^^ 
matemitv benefits are combined with all other benefits for nursmg. 
ri8?5 384 "cieties out of 3,762, or 10.2 per cent, were gmng such 
benefits in 1894, 451 out of 6,725, or only 6.7 per cent; and m 1904, 
S out' o? 6 535 or 8.8 per cent. The total expenditure for this 
pSpt:; in S'as far as'obtained by that investigation, was only 
14,182 Ure ($2,737.13), and later data are not available. 

SPECIAL PRIVATE MATERNITY INSURANCE INSTITUTIONS. 

The organization of a private maternity insurance "«*ftutio" was 
first nroposed before the workmen's insurance congress m Milan m 
^4 3tre plan proposed was made the object of a vigorous agita- 
tion bv many organizations of Italian women. A thorough study of 
theauestion was undertaken by the Italian Hygienic Society, and m 
1898 it prepS the constitution of a maternity insurance institu- 
tion and hougt the institution has never been realized the plan of 
ir proposed organization is nevertheless of some luterest The 
IbirtoMl e projected institution was to grant financui assistance 

?^T ' i4jlh^^^¥&tS 'Zr^'i:^^ ?r ctSu^s 
rrSvtt^St, a"c^:rdi:^o: schedule which was to take^e 

at La^t 300 days of previous membership. A reserve fund was to be 
at lea^t •^"" «i«J^ °^ li ^ „f ^^e annual surplus was payable, 

Se 7'5'p ct of twfsuX was to be redistributed among the 
Ictte member The administration was left to the general meeting 
of all iTiTers and officers were to be elected by this meeting. 

iZrprn, which also failed, was proposed by the Sayings Bank 
of^olSna It was a scheme of individual saving rather than insur- 
ance It was contemplated to issue special '' maternity saving 
books "only to girls under 16 years of age who are employed in 
manual labor or whose parents are so employed, to be subject to the 
Genera rules 'folavings accounts, except that the savings so made 
general ruies loi ^ ^ childbirth; and as an encourage- 

Z:ilt:^^^Z^^^^^ of 200,000 lire (S38,600) was to be 
"ea ed the interes't of which was to bo distributed -noug the owne^ 
of thei special maternity accounts. Only in cases of childbirth m 
marriageTr^thin thefirst 300 daysof widowhood, were these savmgs 

'"The'fct^'plan which materialized was conceived in Turin. A 
lealte Fof the defense of the interest, of women was organized m 



CHAPTER VII.— WORKMEN 'S msiTBAxr^^ 

^ S INSURANCE IN ITALY. 1853 

iiinn early m iSQ'^i an^ « 

in Turin ea'rly in'SC^LlIT v" t^ -'T "' ^'^'''^^'' ^^'^ 
maternity insurance fund. S^ZJZTJVT '' ^''^'^^^^ - 
organization committee and in the hT *^« j^ague appointed an 

established. According t„,f !• ''^?"^'i''»g of 1898 this fund was 

enable its active m^^t^^^^^^^^^^^^ « «- aim of this fund is S 

and after childbirth. The totalTerioT 7"-^ ^°'' '°'°« *^« before 

normaUy given is 30 days, wuLtcrefn"""^ ''^^^^ ^""'^^'^ are 
birth, special provisio^ V™;^ /^^"^---ompanying chUd- 
The normal period is divided So ;«?* °»aximum of 45 days, 

days after chUdbirth. In case of m "' '^ ^^^^ ^^^^''^ ""d 15 

only the second term is paid for °^^*™*g« '>'• Premature labor, 

The daily benefit for the period i« i sn r . 
given only upon proof of actCh^ f ^^ ^^^ ''^''^^' and it is 
djtions exacted Tre that E Iman t"" """ ^''''- ^^^^'^ •^- 
of admission to memberahin 7hT .'"** P^-^gnant at the time 

place until nine moS^te^a tlTont' ''''Tl' """'^ -* ^ 
membei-s' dues be regularly paT °»«nibe,^hip, and that the 

Membei. are divided inrtlTee clai's" a^ ""^''^""^ '«— 
honorary; but from a financial nnin/T^^^*'''^' contributing, and 
are hnportant. ContTbTti^' '^^ ^^IT "'^ '^^ ^* *^« ''*-- 
association from humanitarian 7ZiHt ^^""T ^^» J^^^ *!»« 
into three groups-founders X '^f IT'' *^^^ "^ '^^'^^'^ 

(»193) as a lump sum; l£ memberwW .""k ''" ''"''' ''">'' ^^- 
lire ($9.65) at once, either in Zn^'o^i^cZT^.'" ""* '^ '^^'^ '^ 
ing members, who agree to contribute 2 .^^0"'.' """^ ^'"^tribut- 

at least 5 year«. Active member pat .0 r"''^ ^"^ "'^""'^ '«'• 
month. f^moers pay 50 centesimi (10 cents) per 

An interesting subsidiary function nf *i 
awarding of premiums to mXS who tak'^r'^K"" ^ '^' ^"^"al 
Cu'r:n^"'r ""' P^'^-'--ndtdy vlit^^^^ '"* "'^^ ^' *'^- 
^o1:!^^'^^']!^^^i^-^^^ be expected 
expected, but by experiente ifia^ rXf, r.T' "" *^-^-« 
this rate m view, the financial s^h, * .? *'' ^° P*"" *^«nt. With 
the following computatlT: " ^^ *^" association is seen from 

With a daily benefit of I 50 lirp r^o . x . 
normal amount of benefits per eaSi Jl, T^^ "'"'^^ '« ''^y^' ^he 
or 1,800 fire ($347.40) for each 1^0 IT ""T '° ^^ ^^^ («8-69), 
^^!!^!^f!^!!^^i!^ost:T^^^^^^ without takini 

^"i^^^^r^^^^^riT^-—----- !!!2^i_The amiual member- 



" Henri Sc^d^kl^^TTTT- — ^ii«annual member- 
International dtl'ecUnrdTTV^?^^^^^^^^^ 
tenue . Busaeldorf du fT^^i^^^ J- A.n^ee« Scial^^M^ti^^,^ 



1854 



BEPOBT OF THE COMMISSIONER OF LABOR. 



ship dues of these 100 members amount to 600 lire ($115.80), or 
only one-third of the necessary cost, leaving 1,200 Ike ($231.60), or 
two-thirds, to be obtained from contributing members or from other 
charitable sources. Yet 6 lire ($1.16) per annum is considered quite 
high for dues, considering the wages for labor in Italy, the old-age 
insurance institutions not daring to demand more than that. Thus 
a voluntary system of maternity insurance in Italy seems to meet 
the unsurmountable difficulty of excessive cost. 

The provisions of this societv were somewhat modified («) m 1904, 
when the society was recognized under tlie law of 1886^ An effort 
was made to adjust the membership dues to the risk of maternity, 
though in a rather crude way. The dues are 35 centesimi (7 cents) 
per month for women under 21 years of age, 55 centesuni (11 cents) 
per month for women 21 to 30 years old, and 45 centesimi (9 cents) 
per month for women over 30 years of age. The number of members 
in 1907 was 494, and the number of cases assisted only 121, or less 
than 25 per cent. Nevertheless, the membership dues were not 
sufficient to support the society. 

Five more maternity benefit societies are known to have beea 
organized— one in each of the cities of Milan, Rome, Florence, and 
Brescia in 1905, and one in Bergamo m 1906. 

In the MUan societv the membership dues vary from 1.20 lire 
(23 cents) to 9 lire ($1.74) per annum for members under 20 years 
of age, and for all over 20 years of age they are 9.60 lire ($1.85) per 
annum, while the total maternity benefit must not exceed 30 hre 
($5 79)' The society in Rome, while offering a benefit equal to that 
of the society at Turin, exacts as dues only 25 centesimi (5 cents) 
per month. The society of Florence gives a daily benefit of 1.50 hre 
(29 cents) for twenty days before accouchment and for an equal 
period after accouchment, making a total benefit of 60 lire ($11.58), 
and also exacts higher dues— 45 centesimi (9 cents) i)er month for 
members under 21 years of age, 65 centesimi (13 cents) for members 
from 21 to 30 years, and 55 centesimi (11 cents) for those over 30 

years of age. , . , ^ ,.r. i. • • 
The society at Bergamo charges membership dues of 40 centesimi 
(8 cents), 60 centesimi (12 cents), and 50 centesimi (10 cents) per 
month, respectively, for the same three age groups as shown for the 
Florence society, in addition to an initiation fee of 1 lira (19 cents), 
and grants a benefit of 40 lire ($7.72). ^ 
The society at Brescia charges 40 centesimi (8 cents), 55 centesimi 
(11 cents), and 45 centesimi (9 cents), respectively, for the same 
three age groups, and grants a daily benefit of 1.50 lire (29 cents) 
for thirty days, or a total of 45 lire ($8.69). 

a Henri Scodnik, L'Aesurance Maternelle et lee Caisses pour la Matemit6 (Congr^s 
International des Assurances Sociales, 8« session, Rome, octobre, 1908). 



The variations show thpt ih^^ • 

th^e societies, which are part Lh 3"^/- "''"^"^^ ''^^ ^^ -^ 
A great stimulus to .,/"'^"^.^«f -supporting. 

temity insurance" ve/bvth "^'r* ^ *^« ?-"«- of nv- 
^l-regulatinginlSeXwm^Sr^ ^'^ ■'"°! ''' ^««^^ of 
Article 6 of this law specificajfyToSbitl ZT? '°'' ''^'^«°- <") 
withm one month after chUdbirth S .!. ^^P^oyment of women 
may be reduced to three weeks providedT^"°°*' "^'^ '^ Period 
tificate signed by the bureau of Ene of .^''T*'': ^^^^^<^ cer- 
r^ides, certifying that the state ofhT, ,^- '""*"*^ ^ ^l^<=t she 
without any harm to herself! perfomTh;^ *^** '^^ ""^y, 

to be employed. Thus the law iitLT '°'" •^^''^ ^« '^^^^ 
abihty, accompanied by an If^ ^ . ^ P*"«^ ^t legal dis- 

natural that in' both clSu^TtLZr' '"^f ' ^^ '' ^^ 
thjs law wa^ accompanied by r^olutL^^^Ttf *^^ ^'^''P^^^ of 
called upon to prepare a plal ^T£ , t\^^^ Govermnent be 
maternity insurance instifuSn in Jw ^''^^T"' «* '' •»»««'^al 
obligatory for all those fema e ;orke^ ?J membei^hip should be 
-mely, employees of mines, f^J^^lT^tZo^ '"^ "''''-' 
^ xxv.sxxo.xxox or xhk .r^^, «, ^^^ 

estaffi^s^:^roSX°trr^^^ for a bill to 

agriculture, industry, ^nd coZnltZZ^TT'^' *^" "^^^^^ of 
Labor to undertake an investSr 'i^ *^^ ^*"^'''» bureau of 
who axe covered by the h^SZlS^^^^. *" '^^'^^ ^o"- 
undertaken m 1903, and the report nubli!?!;. . ^be mvestigation waa 
statistical mvestigation of that bureau Tt "" T' ^'^ *he fix^t 
ber 1, 1902, to November 30 1903 «„? ^7'."^ *^^ ^^^^ I>«'em- 
employees in 2,654 estabUshm;nts ' "'"'"'*"** ^^2,365 female 

According to the Italian census of JQn, *», 
Ployees and then- proportion to tb«w',''^ ''""''^'- °' '«°»ale em- 
shown in the follo4g^aS *°*'^ '''''^^' "^ ^"'Ployees I 

NUMBER AND PER CENT OF TEMALE E 



Industry group. 



-AJl Other." 



|Totalnum-| 
ber of em- 
ployees. 



1,002,728 
162.883 
458,302 
971, 781 



2,595,694 



Female employees. 
Number. 



20,219 

19,353 

366,571 

324,673 



730,816 



'Belgium, offi^d;;^:^;;^— —- ^ : — \__^^^^^>8h 



28 



14 ,_. 






1856 EEPOET OF THE C0MMISSI01.ER OF lABOE. 

The total number Of females emplo^di.^^^^^^^^^^ 
to the census of 1901, was 730,816. On the ot^ - ^^^^^^ 

tical office of the Ministry of Agncultu'^e nW ^^..^..li^hments 

subject to the law of June 19 19 . ^^^^^^^ 

.^Ti^ T>ww n?NT OF FEMALE EMPLOYERS IIN r-^v. 
NUMBER AND PER CENT OF nfflcio del Lavoro. Basi TecnichediunaCassa 
^source: Ministerodi Agricoltura,Industria^eC^ommer^^^ 



Female employews. 



Industry group. 



Nuin))er Total num- Under 15 years O^^r 15 years 
ofestab-p ^jgr of I of age. 1 oiage. 

lish- employees, 
ments. 1 > • > Per 



Number. ^^^J. Number. ^^^^ 



Per 
cent of 
„ . , 1 total 
Total. em- 
ployee*. 



374,711 

249, 464 
421,643 
228,888 



3,407 

1,700 

54,039 

23,202 



12.0 

7.2 

17.3 

26.8 



24,931 

21,799 

257,921 

63,469 



88.0 
92.8 
82.7 
73.2 



28,338 

23,499 

311.960 

86,671 



7.6 

9.4 

74.0 

37.9 




Mines, metallurgy . mechan^ , 
ical, and chemical industries j^ ^^ 

Food products g* 323 

Textiles 12, 670 

All other 

m 4. 1 143,993 

Total 1 

' ^ ^f 1 974 706 employees, 450,468, or 35.3 

Thus out of an aggregate of ^^J^f^^^'^lJ^o, or 81.7 per cent, 

per cent, were fe^d^; but oj the^e^^ony ^^ , ^^ ^ ^^^ ^^^^ ^^ ^,^ 

■were over 15 years oi age, 

aggregate. "Rnrpau of Labor embraced only 2,654 

The investigation of the Bure^" J ^ , ^eat, but these 

estabhshments, <^^\^l'f^,\S iZ^^es between .the ages of 15 
estabUshments ^^^P^^^f ,'S'female"«iployees over 15 yeas of age, 
and 54, or 46.8 per cent "^-^^^^^P J^ sufficiently accurate, 
which makes the results of th« ™'J^ statistical results of this 
In the follo.ving table -^^^bv ' he^^^^^^^^^ of actuarial 
investigation, somewhat ^imphj^d by ^ ,1,, ^irth 

details. The table shows, by the four indust g P ^^^^ ^^^^^^^ 
rate per 1,000 fuU-year e^l^^J J^ « ^^J^d the average wage 

employees between 6 ^^^^^^^^-^ ^•''"^""^* '"^'"'' '"^ 
of women giving ^^^^^ *" "^^J^ between the dues necessary 
finally a computation of the r^atio ^^^^ ^^ ^^^^ 

to cover the cost of matermty insurance ^^^ ^^^^^ 

employees. T^«/-f£ilytt,Tr fhlturths th'e daily wage, 
equal to one-half the ^J^yj^. '- ^ thousand fuU-year workers. 
The birth rate was found to be only 45 per^tno .^ ^^ 

wlule it is 120 per thousand J'>^ ^^^^^J "J'^^^^^poftion of umnarried 



CHAPTER VII.— WORKMEN *S INSURANCE IN ITALY. 1857 

half the wages for 30 days, and 0.45 of one per cent of the wages for 
maternity . benefits amounting to three-fourths of the wages for 
30 days. ^ 

BIRTH RATE AVERAGE WAGES, AND PROPORTION OF WAGES NECESSARY Trt 
INSURE MATERNITY BENEFIT, BY INDUSTRY GROUPS im 

[Source: Ministero di Agricoltura, Industria^e Co^-^o. Ufflcio del Lavoro. Basi Jecniche di una Cassa 



Industry group. 



Num- 
ber 
of 
estab- 
lish- 
ments. 



Mines, metallurgy, me- 
chanical, and chemical 
industries 

Food products.. 

Textiles 

AU other '.'.'.'.'.'.'.. 

Total 



244 

90 

1,643 

677 



Num- 
ber of 
female 

em- 
ployees 
Nov. 30, 
1902. 



7,029 

1,595 

134,770 

28,971 



2,654 



Com- 
puted 
number 
of full- 
year 
em- 
ployees. 



Num- 
ber of 
full- 
year 
work- 
ing 
women 
per 
1,000 
em- 
ploy- 
ees. 



5,834 

1,085 

120,778 

25,998 



172,365 



153,695 



830 
680 
896 
897 



Num- 
ber of 
cases 

of 
child- 
birth 
among 
the 
wage- 
work- 
ers. 



Num- 
ber of 
cases 

of 
child- 
birth 

per 
1,000 
full- 
year 
work- 
ers. 



271 

42 

4,683 

1,897 



892 



6,893 



46 
39 
39 
73 



Aver- 
age 
daily 
wage 

fe- 
male 
em- 
ploy- 
ees. 



SO. 23 
.25 
.22 
.30 



Aver- 
age 
daily 
wage 
of 
those 
who 
be- 
came 
moth- 
ers. 



Premiums 
necessary to 
insure a "niu- 
ternity bent- 
fit for 30 da\-3 
(expressed in 
10,000 parts 
of the wages.) 



When I When 
benefit benefit 



is J of 
wages. 



45 



.23 



SO. 26 
.26 
.23 
.32 



36 
34 
25 
46 



is} of 
wages. 



55 
51 
38 



,26 



30 



45 



BILL OF 1905. 

The results of this investigation and the discussion of the problem 
Of maternity insurance both by the council of provident institutions («) 
and by the superior council of labor C) resulted in a bill which was 
mtroduced m the Chamber of Deputies on May 27, 1905 (0 by the 
mimster of agriculture, industry and commerce. The bill aimed to 
estabhsh a system of obligatory maternity insurance, limited to 
women between the ages of 15 and 50, employed in mines, factories 
and workshops. ' '^^"iic5>, 

For this purpose a national institution or fund was proposed ..ath 
headquar ers m Rome, to be administered by the National Old-Age 
the sam? ^ Insurance Institution, as an autonomous section of 

In this institution the insurance was to be compulsory for all 
women of the class and age designated. The benefit necessarA^ was 
placed approximately at three-fourths of the daily wage for 3o\lavs 
rather than a flat per diem rate, which would have no rein'"; 
t he local variations m the cost of living, as th^^ vagesdoto a great 
« Atti del Consiglio de Previdenza (Ministero di Agricoltura Indii«fria a C^^ 

^ Atti del Consiglio Superiore del Lavoro. Ill Sessione, 1904 
c Bollettmo dell' Ufficio del Lavoro, Vol. Ill, 1905. 



1858 



REPORT OF THE COMMISSIONER OF LABOR. 






extent. It was also thought proper that the employer share with 
the employee the cost of this form of insurance. 

The bill proposed to group the wages, contributions, and benefits 
into seven classes rather than to leave the determination of either 
to special computation in each case. This slight deviation from 
abstract justice was justified by consideration of administrative 
simplicity. Accordingly the following wage groups with the corre- 
sponding contributions and benefits were prepared: 

CONTRIBUTIONS AND BENEFITS, BY WAGE GROUPS. 
[Source: BoUettino dell' Ufficio del Lavoro, 1905, Vol. III.l 



Group. 


DaUy 


wages. 


Annual 
contributions. 


Daily benefits. 


1 


Lire. 

Under 0.60 

0.61 to 1.20 

1.21 to 1.80 

1.81 to 2.40 

2.41 to 3.00 

3.01 to 3.60 

3.61 and over 


Under $0.116.... 

$0,118 to $0.232.... 

.234 to .347.... 

.349 to .463 

.465 to .579 

.581 to .695 

.697 and over 


Lire. 
1.20 
2.40 
3.60 
4.80 
6.00 
7.20 
8.40 


$0,232 

.463 

.695 

.926 

1.158 

1.390 

1.621 


Lire. 
1.00 
1.00 
1.35 
1.80 
2.25 
2.70 
3.15 


$0,193 


2 


.193 


3 


.261 


4 


.347 


5 


.434 


6 


.521 


7 


.608 



The annual contributions represented two days' wages, or about two- 
thirds of 1 per cent of the annual earnings, based on the maximum 
wage of each group, except in group 7, in which the contribution is 
limited to 8.4 lire ($1 .62). The daily benefits represented three-fourths 
of the maximum daily wage of the group, except that in the first two 
groups a flat rate of 1 lira (19 cents) per day was established, being 
for some employees even higher than the daily wage, and in group 7 
the daily benefit was limited to 3.15 lire (61 cents). 

Other proposed sources of income for this institution were fines and 
penalties collected for noncompliance with the demands of the law, 
and private contributions and donations. But the membership dues 
have been adjusted to cover the cost of insurance. They were to be 
paid by the employer, who was to be permitted to deduct one-half of 
it from the wages of the insured. Every three years, or oftener, if 
found necessary, a technical revision was contemplat(^d and the 
amount of contribution could then be changed if necessary. 

The rates suggested in the bill of 1905, amounting approximately 
to two days' wages, or about 0.67 of 1 per cent of the annual wages, 
are somewhat higher than the rate obtained by the investigation of 
1903 (0.45 of 1 per cent). The report justifies this increase first, be- 
cause in the statistical investigation miscarriages were not taken into 
consideration, and because due weight was not given to women em- 
ployed only a part of the time. The expenses of administration must 
also be taken into consideration, even though they would not be very 
great if this form of insurance is managed largely by the old-age and 
invalidity insurance institution. The elimination of the female em- 



OHAPTEE VII.-WOBKMBN'S INSURANCE IN ITALY. 1859 

PJTon,' ^° n" ^^ ^'^'■' °'^' ""^^^ ^«r« i°«l"ded in the investigation 
of 903, will naturally not decrease the number of birthT^e^y^^lr 
rially and therefore will increase the birth rate. 

BILL OP 1907. 
Notwithstanding the active support given the bill of 1905 by manv 
cib Tn *'T' '' r^'^ ""'' ^"'"'"^"d active attentfon^iT the 

v<>flr<5 lator TK-, \i ■ i , . . report until more than two 

years later. The Ministry of Agriculture, Industry and Commerce 

bpnf /'a^ TK^«^ • • , . ^^ ^" ^'^^ i^^^s Of the new mcum- 
nnrf iA,, commission admitted all the contentions brought in su^ 
por of the preceding bills. It stated that in the opinion of the ma 

o^t ofl s iZ "'•'" '* "^ also desirable that the State shLltTh" 
cost of this insurance equally with the employer and employee but, it 

ttdZlT r '"TT ^ Government ove, to thi^pSof v^ew 

coi;rte7=rd^^^ i zi^xcer -r. w^^^ 

w^ile the amount of ^^^^7^1 ::tZ--':}'^t^ 
(«5.79). In making this change, the commission areued thtt tU 

gested imposed a burden of only^i^cInTeSi (^T'^f ^"'^ ^"^- 
upon the women insured, and iZZTZ ^ItlZ^lZT 
poorest employees, while the benefit of 30 ]Z 7*^70? ^! 

for thirty days, or the fuU wages for about twenty-two days 

BILL OP 1909. 
The report of the parUamentary commission of December 20 1907 

. ." ^ollettino deU' Ufficio del Lavoro, 1908 Vol IX t> ^7q ^ 

bill in Zacher'sArbeiterversicherung im Au^la^de H^ft V. r ««™^ ^xt of the 
w Henri Scodnik'8 L'Assurance Mate™^l W 7 A ' *'' P' *^- ^^""^ »«»* 

International des A^uxancrs^^^C-l^^n^^^^^^^ 



1860 



BEPOBT OF THE COM MISSION EB OF LABOB. 



:i 



session, and a new bill was introduced on March 29, 1909. This new 
bill was practically identical with that reported by the commission on 
December 20, 1907. 

The one important change concerned the rate of membership dues. 
Instead of a flat rate of 1.50 lire (29 cents) per annum for each em- 
ployee from 15 to 50 years of age, the rate proposed in this bill was 
1 lira (19 cents) for those from 15 to 20 years old and 2 lire (39 centn) 
for those over 20 and under 50 years of age. This change was based 
mainly upon the great difference in the maternity rates for women of 
these two different age groups. (") It has been computed that this an- 
nual rate for women 15 to 20 years of age is 0.3 of 1 per cent, while for 
women 20 to 31 years of age it is 8.4 per cent. The statistics of 
women at work in Italy (^) shows that women from 15 to 20 years old 
constitute 38.5 per cent of all female employees over 15 years of age 
and women from 20 to 55 years of age 58.7 per cent. A rate of 1 lira 
(19 cents) per annum for the former, and 2 lire (39 cents) per annum 
for the women from 20 to 50 years of age will evidently average only 
a little more than 1.50 lire (29 cents) per employee, and yet be more 
equitable, in view of the different maternity risk, than the flat per 
capita rate. 

Another change of some importance was that of denying the right of 
benefit in the case of intentional abortion, while the cfises of normal 
abortion or miscarriage were treated as ordinary cases of labor. 

In none of the bills proposed and here discussed has any effort 
been made to furnish different rates for married and unmarried 

employees. 

The parliamentary commission brought in a very favorable report 
upon this bill in June, 1910(0- The commission again put forward 
the principle of state subsidy and found greater encouragement 
in the new cabinet, which followed the ministerial crisis of Decem- 
ber, 1909. Instead of the earlier demand for equal contributions 
from all the three parties concerned, a compromise was reached 
in the proposal that to each maternity benefit of 30 lire ($5.79) 
the State contribute a subsidy of 10 lire ($1.93). This represents 
the only important amendment proposed by the parliamentary 
commission. 

A month later the entire text of the bill as presented by the com- 
mission was adopted by the Parhament without any changes, and on 
July 17, 1910, the act became a law, thus establishing the first national 
institution for maternity insurance in the world. 



a BoUettino dell' Ufficio del Lavoro, Vol. XI, aprile, 1909. 

b La Donna neir Industria Italiana (Pubblicazione dell' Ufficio del Lavoro, SerieB, 

No. 5, Ann. 1905). 
c BoUettino dell' Ufficio del Lavoro, Vol. XIII, June, 1910. 



CHAPTER VII.-W0BKMEN'S msURANCE IN ITALY. 1861 

PROVISIONS OF THE LAW OF JULY 17, 1910 - 

and children. Onl, sThtoil' r^^pr^Sd ^^^ "' r""^" 

are covered by the new maternifv ft.nW ^ ."f ''^^ ^y *^'« ^a^'er act 
female employees of the SftT^f^ r^' **" * ^"*^*' exception of 
equally fa/oraWe elts '**' '" "^-"^ '^''''' P-^^'- »* least 

J^J^ =Sntrtrrltu?th^an?r-sl ''''V'' 

mother shall discontLue toi t '7, f "" '"^ °^ '^'^^^^ '^^ 
also be remembered that 1 hran5 ^ ^7'" "'.^^^' ^** '* ^^'^ 
minimum for sick benefit luJlll^^i'^Z^t'lLi^ "^"*' 

Tfter parturitL Authorirvt "t '^ ^"^ ^"^^ *^« «-' -eek 

to reire thatThe t:S:^^Z!:ilv^;z:iZ^Tsr 

is ^ven to b^e^aS frSgTheten^r^^^'^ ^ ^•'-"-- 

A "^'^s/yV^^'^^^s^ro'. trtitrdr "*«. ^v^ ^-^• 

employees to which the act aSies namelv I'^'^Z"^ ^^«'° «" 
between the ages of 15 and 50. £ 'womTn [s to T "" T.''"' 
contribution is one lira flQ 1 P»„fc^ ^^ ^'®*'^ '^^'^ the 

50 years old, two 1 re (38 6 een s) o7tZ"'"l 'k' '°'' ""'"^'^ '' *« 
are to be paid by the LpCL f.^^^^e '''''''' ^^"^ ^^"- 

onIt,ronf rm%t*?a:ero? th^ '""^ 7^'°^^^' ^'^ ^^^ '^^'l-t 
the share of the el 0'!^^^ I f "^P oyee. Any effort to raise 

In case of falire^o?^ e° 1T ^f '^"«''°- ^^ punishable by a fine, 
contributions, r:Z^:::t^^l^Zr.^ ^l-equired 
benefits must be naid to tharr. o„^ ^u -^ . """^^ ®™P^<>J ^^s. flie usual 



1862 



REPOET OF THE COMMISSIONEB OF LABOR. 



Other revenues of the fund, foreseen in the law, are fines collected 
from employers for noncompliance with the requirements of the law, 
and gifts or legacies or other miscellaneous contributions to the fund. 

An indirect contribution from the State is represented by the 
assumption of the cost of administration and the granting of other 
privileges, such as freedom from taxes and registry fees for all docu- 
ments in connection with its administration. 

The maternity fund is intrusted for administrative purposes to the 
National Old-Age and Invalidity Insurance Institution, though tJie 
finances of the two institutions must be kept entirely sei)arate. The 
seat of the new institution is therefore in Rome. The maternity 
fund is to be administered directly by a special committee, appointed 
by the administrative council of the old-age insurance institution. 
Provision is made for representation of both employers and employees 
on that committee; one-third of the committee to consist of the 
former and one-third of the latter. These representatives of both 
the employers and employees are to be nominated, however, by the 
minister of agriculture, industry, and commerce from the colleges 
of prud'hommes (coUegi di prohirviri) of the industries in which 
women are employed. 

The financial organization is also intrusted to the National Old-Age 
and InvaUdity Insurance Institution, though the accounts must be 
kept separately. During the first year of the appHcation of the law 
this institution is to advance the necessary amounts to the maternity 
fund, to be repaid in five annual installments with a 4 per cent 
rate of interest. 

Annual reports to the Parliament concerning the activity of the 
fund are requu-ed of the minister of agriculture, industry, and com- 
merce, these reports to contain all necessary suggestions concerning 
the revision of the actuarial basis of the fund. 

All the details of the appUcation of the law are left to the regular 
tions, which by the act were required to receive formal approval by 
royal decree within six months of the approval of the original act. 
The act is to go into effect three months after the publication of the 
regulations. 

OLD-AGE AND INVALIDITY INSURANCE. 
NATIONAL OLD-AGE AND INVALIDITY INSUBANCE INSTITUTION. 

In its system of compulsory insurance against industrial accidents 
Italy followed to a great extent the example of Germany, but it looked 
to France and Belgium for models of a system of old-age insurancti, 
and the National Institution for Insurance of Workmen against 
InvaUdity and Old Age (Cassa Nazionale di Previdenza per la Inva- 
lidita e per la Vecchiaia degli Operai), established by the law of July 1 7, 
1898, is an institution for voluntary but subsidized insurance, and 



CHAPTEE TII.-WOBKMEN's IKStTEAKCE IN ITALT 1863 

?Sn'inSrnr ^^'^^'^^^ ^ '""^ corresponding F.nch and 

r^^^z t:z/z v-.tr r '--. --™^ — 

insurance has also a history !f ^^It'. ^^'**'° "^ voluntary 

efforts. "^^ "^ "^^'■'y *^e°ty years of persistent 

HISTORY. 

A biU providing forTucMn™ u ^ '^^^^ ^^"^ «^ ^*' «« 1859. 
This law did not Lpose Tyfinl T'^k',-' ^^" "" '^""^ ''■ 1859. 
treasury and therefore offeS no ad^H^r "^ 'f^^''''^^ "P<"^ the stat« 
provision except that pSTnld bv ^" ? ''"'°' ^''•" ^'^"'^^ 
institution (C'aiarfirll^!wir-^ *^ existence of an insurance 
went into eLltt7^oitT^"!^7""^ «»wcaiai«).(a) The lawnever 

A proposition tolvTrtj^^rd f '"*' °f*^^ '"'"''^'^Sd^-d- 
Deputies on February? 1877 K , '^.r*' "*^« '" tJi^ Chamber of 

Agitation for thTifab SLt^TtlTitr -^'l 
age pensions, organized bv Uhn. 'n^t'tution to provide old- 

the appointment' on"J,;^b f n Tfr^'T:!" ^^'*'^"*' ''" ^ 
mmister of interior and the minislr nf ^ ''°™miss,onO by the 

commerce for the study of tL pSm andTh *"'' ''"^'''''^' ''"^ 
and regulations for an old-Se anH n t^i Preparation of a bill 
The commission brought in Trenn/w^*^ P"°''^'^ institution.(«) 
was proposed the estflw^of 1^0,]^' ^^'^ '' ^ ''"' '" ^^^^ 
for the exclusive insurance of ll ^'^'^gc «i«"rance institution 

600 lire (,115.80) to Lsural S^ "'he '' "'^P""'' ^ "'"'^ ^' 
tution were to consist mainlv o7?l!» revenues of the insti- 

ondly, of voluntary contrfiion or T"""'^ "^ '^' ''"'^'^ re- 
state subsidies. «°°t"^"twn or legacies, and finally of certain 

NaTlTnaTBllXraLtdtt^^r Tk*^ "^ ^^^^^^^ *<> «>« 
to act as agencies. TlecosJ otoZ' '?-^ '^' '"^'^^ POsWflices were 

to be advaLd by thrStat llral: .'rrelldl"'"^^*^^^ -- 

^=zi tstituirri S^^-^^^^ 

^; Att. Parta^entari, LegisUtu. XIII. Se^ione Isr6-77, Camera dei Dep.tati 
^ Zacher, VI. 189Q n 9q a *..• t> , ' 

1882-83, earner; dei i>!,2ti, "^^t' rs?'"""^"'^' ^^"'^ ^V, Pri^ Se«ione. 
67726°— VOL 2—11 2i 



1864 



BEPOET OF THE COMMISSIONER OF LABOB. 



I 



by federations of such mutual benefit societies by offering them free 
of any expense the cooperation of the local post-office for the receipt 
of contributions and payment of pensions. 

Based upon these recommendations of the commission, a bill(«) 
was introduced by the minister of agriculture, industry, and com- 
merce in the Chamber of Deputies on November 30, 1881, for the 
establishment of a national institution for workmen's pensions. The 
essential features of this proposal were, first, its special designation 
for the use of wage-earners, and, secondly, the proposal to turn over 
to this institution as a state subsidy to the insured 20 per cent of 
the net profits of all the savings banks, private as well as postal. 
This provision of the bill caused considerable criticism and opposition 
from the savings banks, which claimed that such a tax would be an 
infringement of their rights and would endanger their own obligations. 

On the other hand, the formation of an old-age pension institution 
without some material state subsidy offered very Httle hope for success 
in view of the very low standard of earnings of the Italian workmen; 
and the state treasury was not in a condition to furnish a direct 
subsidy without additional taxation. 

The bill of 1881 never came up for discussion in the Chamber of 
Deputies. It was reintroduced with some modifications on February 
19, 1883. e) ^ 

According to this bill, the old-age pension institution, though an 
independent organization, was to be administered by the National 
Bank of Deposits and Loans. All workers of either sex over 18 years 
of age could take insurance for old-age pensions in this institution. 
The monthly contributions were to be not less than 1 lira (19 cents) 
nor more than 4 lire (77 cents), and an entrance fee of from 5 to 50 
lire (97 cents to $9.65) was to be required. In addition to the con- 
tributions of the insured, several other sources of revenue were pro- 
vided; namely, two-tenths of the net profits of the postal savings 
banks, but not of the other savings banks (0 and a few minor sources 
of revenue. Pensions were to be payable at any time after the 
insured had reached 50 years of age, provided he had been paying 
his premiums for fifteen years. In case of invahdity bi^fore reaching 
this age limit, special pensions could be granted by the committee. 

« Zacher, VI, p. 29. Atti Parlamentari, Legislatura XIV, Prima Sessiono. Camera 
del Deputati, No. 263. 

& Atti Parlamentari, Legislatura XV, Prima Seesione, 1882-83, Camera dei Depu- 
tati, No. 75. ^ 

c According to the law of May 27, 1875, establishing the postal savings banks, seven- 
tenths of the net profits of the savings banks are distributed to the depositonj, and the 
remaimng three-tenths must be distributed as premiums to provident institutions 
The assignment of two-tenths to the national pension institution was therefore 
Claimed as a fulfillment of their legal obligations. 



CHAPXEE VII.-WOHKMEK 's msUKANCK IK IXAI.V. 1865 

ance with rese Jd cap 7an^^^^^^^^ in this report insu.. 

difference bemg that under ~ I '''' ''P'*^'' '^^ «^«'»«»» 
were payable^ the helt faTeo ZZ7ef ^^^t, —"1"^-- 
granted, whUe in mutual insuranll. t ? ^^^ P^°^'«n ^as 

forfeited. The two dintlTTZ. t '^''^™"l''ti«'»« ^ere to be 

separately, and the accuStiSns o/pror^T' ""^ "^ ^« "^^P' 
urally would be higher. ^ " "'^ "^"^^^i ''l^ss nat- 

In the mutual class the erantin«r nf tu^ „ • 
8017 at the age of 65. But LeSr form 1"^'"° ^^ *« ^^ --pul- 
granting the pension it couhJ h?. ^^''^'^^^ insurance, at the time of 

wishes of the Lured,^o a" to reserTeTe r" '"'"'''''''' "'*•» '''^ 
mulations or part of ihZ ^°*""^ '''°«"nt "^ the accu- 

hisheir.,orXoufanyr"seZroKTH°' "" T""^' *« ^« P"d" 
accompanied the bill ^ "" ^**^*° mortality statistics 

^r^X^Z'ztT£;ti:i^ir'''''^^' '^^ bm it. author 

the working classes, and therefore coS Z If "'"^ T'""^^''^ ^- 
the savings of small nronripf^rl °°t become a depository for 

France and Belgfum P'^^"'*'''^' *« ^*« claimed to t>e the c^ in 

J: Sut: tSsfr^Ind t *'7".**''^ ^' *^« '>^ thought a 
this duty upon loci sl^nU'^tnt'or :^ f ', T^^^^ ^ V^ose 
utterly unsatisfactory """^"^^ •'^^^^t societies aa 

anJe'lni^rau^r^rr^f XUo^ "Tf °^ ^"'"-^-^ -- 
' ThrbT'^"'''-^^^ Pentn%rrariugalr^^ ^"^ ^^*'''^^^- 

up^o: ficx^irt^ 

the new minister of LricuUur? in^' 7 ^T"^ '^^'■' ^° Ju°e. 1885 
bill which in many of h , , ' '."^"^t'^' ^"d commerce introduced a 

;hous bills, ^nTTtC\zr:::7:^^Tfist'''^ 't *^"^- 

decree. («) ^^ ^"^ ^^ ^^^^ was recalled by royal 

the'to^"pr:tirS."tr^^^^^ -''^l^ -~ as did 

Belgian experience was conidere 1 f ""m "" '^' ^'"""^'^ '»'>'• the 



:ssiam 



1866 



REPORT OF THE COMMISSIONER OF LABOR. 



earmarks of state socialism and excessive centralization. Equally 
good results were claimed to be possible through private institutions, 
singly or in federations, but under government supervision and con- 
trol, and the National Accident Insurance Institution established in 
1883 was quoted as an example. The bill provided therefore that 
each savings bank could be authorized to write old-age pension 
insurance by depositing a guarantee fund of 50,000 Ure ($9,650). 
Several savings banks could unite in forming an old-age fund. To 
each old-age insurance institution thus organized a definite geographic 
district was to be assigned. Insurance was allowed to all workers 
over the age of 15. Only insurance with reserved capital was to 
be permitted; that is, the premiums and interest being returnable in 
case of death. The pensions were to begin at the age of 50, though 
they could be postponed. When a pension was granted, it might 
be given with or without the reservation of the rights of the insured 
to his original accumulations, and even lump-sum payments might 
be substituted for pensions. 

The state subsidies to the insured remained nearly the same as in 
the previous bills, but they were divided into two groups, the annual 
subsidy and an eventual subsidy, the payment of the latter being 
delayed until the fund reached a certain amount. The main bond 
between the many old-age pension insurance institutions was to be 
formed by the distribution of these subsidies among them in direct 
proportion to the number of insured. These were to be further 
distributed in equal amounts among all insured persons who had 
paid in not less than 6 lire ($1.16) during the current year. The 
cooperation of the postal savings banks for collection of premiums 
was another form of state assistance. This bill did not have any 
better success than its predecessors. The Parliament dissolved 
before it came up for discussion. 

The fourth bill in this series of unsuccessful efforts was introduced 
in the Lower Chamber on December 9, 1887. (**) In this bill the 
tendency away from a direct state insurance toward a system of state 
subsidy and supervision of private local pension insuring institutions 
was even more pronounced than in the preceding bill. The bill of 
1887 provided for the establishment of a special fund in connection 
with the Bank of Deposits and Loans. This fund was to be utilized 
for distribution of subsidies to institutions for insurance of workers 
against old age, and the selection of the institutions and the assign- 
ment of subsidies to each were to be left to ministerial decrees, with 
the provision that the distribution must be in proj)ortion to the 
number of insured persons over 15 years of age who had paid in 
during the year not less than five lire (97 cents), and the subsidy 
should not exceed twenty lire ($3.86). In return for tliis subsidy the 

« Atti Parlamentari, Legislatura XVI, Camera dei Deputati, No. 74, 



CHAPTEB VII.-WOBKMEN's INSUBAHCE m ITAI^Y. 1867 

in compUance wit™ ^7 ^ *^ *^' regulations to be promulgated 

in a favorable JS on Juty^'^^^^^^^ -^-»^ brought 

session of the Parliament in Deceit o^^^^^^^^^^^ 

ibe bill was remtroduced on December 11 isso .^ • 
a commission, which brought in its report on July'l iZ atr^- ^ 
the bill with some modification «> ■ K„t u "" " •'^ i ' ^^"' aPProving 

The fate of the eaSMMndiid a C^%''\^''^^'' Progress. 
of voluntaiy old-age iLrance Non« n 1 **K-n *"■''* '° *^" '^''^'^ 
the eighties had even Seved th. ^ ! / ^^^^ introduced within 
of the Chamber Thk 1^11^ T*^ "^ a discussion on the floor 
before the next e.I^^nZl ZlZ^':''^:'^Z^ ^ ^'TS 

rtr£^tL^t™yfS;nand^^^^^^ 

Industry." National. Institution for Invalids of 

to S fSuls i^rifzTsi? t: ''- ? r --^ ^^"- 

of a national old-age insurlce i^ Lt nTtS t^ ^ ^^^^ 
local and privately organized funds. Tlugriegal t Tu^"^^^^^^ - 
was to be regulated by statutes prepared bfthlS.r'*""' ** 
ture, industry, and commerce flnHT^ I u """^^t^r of agricul- 
aU the previous bills itTrn T ^PP'"."^^^ ^y ™y^ decree. Like 
of waglwrke J^ and a vo^Z *" '"^l"'^'^^ ^o^ the special benefit 
subsidies. From the list I? tw"^ T '"^ ?^ ^^""^^^ ^^'^ «***« 

income of the Po::'f:tcz^t£t:t: :S^''Xe''"' ^! 

insuraoice (with reserS canS ^ T^ ^""'^ ^'l" individual form of 
capital in L ofZl^a^lt:^^^:^^'^^^^ f^^^ 

=re^Tii^^ofLriiir^f'^^ 

before the expSon ofsu t Lmf TT "'''''\''' ^'"^'^^^^ 
depended upon the individu^Mp^ir:, *"" *'*^'^ *^'« pensions 

benefits coiSerredXtThlStA^^rSi^^^^^ ^S??^ 

-Italian text: Atti Parlamentari, Legislatura XVITT Pri™ o ~ 

Deputati, No. 245. BoUettino di Notiz^suT^HT/ 'if^* ^^"'°*' <^*"'«'» ^ei 
French text: Bulletin du ComitrPermrent H^ .^ I?"'' Previdenza, 1893, Vol. II. 

text: Bodiker,ArbeiterveS™~95 '^ *^*'°'^'''°'^^ ««^ 



sum 



1868 



KEPORT OF THE COMMISSIONER OF LABOR. 



bution, the subsidy not to exceed 60 lire ($11.58) per annum to each 
person insured. Various minor privileges were also conferred upon 
the institution. In the main, however, the technical rej^ulations, the 
tables and computations were to be left to be elaborated by the 
minister of agriculture, industry, and commerce. 

The bill never came up for discussion in the Chamber. 

''A Bill for the Establishment of a National Institution for the 
Insurance of Wage- workers against Invahdity and Old Age" was 
introduced on April 13, 1897, passed on July 14, 1898, and approved 
by the Crown on July 17, 1898. Thus the estabhshment of the 
national institution for invahdity and old-age insurance followed very 
rapidly the adoption of the law for compulsory insurance against 
industrial accidents. 

LEGISLATION. 

The following is a list of the important laws, decrees, and similar 
enactments which have been promulgated concerning the National 
Institution for Insurance of Wage-workers against Invahdity and 
Old Age since its organization. 

(1) The organic law estabhshing the institution was passed on 
July 17, 1898, (*) to go into effect one month after the approval of its 
constitution. 

(25* The constitution of the institution was approved by royal 
decree on June 18, 1899. (^) 

(3) The technical regulations of the institution were approved by 
royal decree on June 18, 1899. (*) 

(4) Regulations for all branch offices of the institution wore pro- 
mulgated by the royal decree of July 29, 1900.(0 * 

(5) The provisional tables for computations of earned pensions 
were approved by royal decree of February 3, 1901. (<^) 

(6) Law of July 7, 1901, amending that of July 17, 1898.(<^) 

(7) Codified text of the law, consolidating the act of .Fuly 17, 1898, 
and the amending act of July 7, 1901, published by royal decree of 
July 28, 1901.(0 



a Italian text: Bollettino di Notizie buI Credito e suUa Prevideiiza, XIX, 1901. 
German text: Zacher, VI. French text: Annuaire de la Legislation du Travail; 2d 
Annuaire, 1898. 

b Italian text: Annali del Credito e della Pre\ idenza, 1899. Atti del Consiglio 
della Previdenza, Prima Sessions. French text: Annuaire de la Legislation du 
Travail, 1899. 

c Bollettino di Notizie sul Credito e sulla Previdenza, XIX, 1901. 

d Italian text: Bollettino di Notizie sul Credito e sulla Previdenza, XIX, 1901. 
French text: Annuaire de la Legislation du Travail, 1901. 

« Italian text: Bollettino di Notizie sul Credito e sulla Previdenza, XIX, 1901. 
German text: Zacher, Via. French text: Annuaire de la Legislation du Travail, 
1901. 



CHAPTEB VII.-W0BKMEN'S msITRANCE IK ITALY. 1869 

(8) Royal decree of Decemhpr 90 loni .i • . 
insUtu^on to write insu^r LT Uf^ anniuS* ^"^"^ ''' "''*-^' 
decl^flray 2tmr "' '^' -*'*"*-,0 approved by ro,a, 

banks. C) abandoned accounts with the postal savings 

Juri^Toile)''"'^' ''■ ''''' ^'"-'^-g '^^ law (codified text) of 

an? gentaTLtdililn,;^^^^ "^''''^'^ '""^ P^-- tariffs 

a. p Emitted b, t^^Z^ ^tlT^l-^'-:: 1,t Tef f^^ 
-No. 8 m tins list.)(/) • ' ^"^- (^®® above 

reSif^i'""^ of September 2, 1904, amending the technical 

.^(15)^ Royal decree of September 2, 1904, amending the constitu- 



tion 

(16) Royal decree of November 1« looft i- 

June 26, 1904 concerninlfll • '• ^^^^^^g the decree of 

diu.s of the 'frpj^i:^::::^ ^'^ -- - 

law S J^uJTst mT^Z'tlT' tT^r '''' ^'^'^^ ^-t o' the 
30,^ ig^OrT * ''^ ''^ '^^' ^''P^''^^^ "^y -^^i dec.ee of May 

French text: Annuaire de la LilZnt Sn \Z^^ ^™^''^''^^' '^^^ '^- 
" Italian text: Bollettino de Notizie ri.I CrSf ,.' 

French text: Annuaire de la L^Con<i:T^4l;°i;^^^ Previdenza, XX, 1902. 
^Bollettino di Notizie sul cZit. .sZ^ZiZ^x'^C '*"' ^^''''- ^'I- 
' Italian text: Bollettino di Notizie sul OnS.V^ ■■ ^' ^^■ 

German text: Zacher, Via "" ^ '""* Previdenza, XXII, 1904 

^fSTxt: Suirdi t:- ' «ulla Previdenza, XXH, 1904. 

^ >IUliantext: BrSi^o d^NtTzitt^^rdii'^^'n'^'L' ' '^^• 

Prenc^ ,ex,: Annuaire de la lSLI^L'^iC '^""'^"^'^ ^^^' ''''■ 



1870 



REPORT OF THE COMMISSIONER OF LABOR. 



(20) Constitution of the institution, approved by royal decree of 
March 18, 1909. («) 

(21) Technical regulations, approved by royal decree of March 

18, 1909. (^) 

Not all of this legislation is m force at present. The new codified 
texts of the law have successively been substituted for the older 
texts, and with the approval of the new statutes and regulations the 
preceding ones were repealed. In the following pages only the leg- 
islative acts now in force will be studied in detail. But it is necessary 
to precede such detailed analysis by a brief review of the changes in 
legislation affecting the National Institution for Insurance of Wage- 
workers agamst Invahdity and Old Age, because only through such 
study of the changes can the tendencies in the growth and develop- 
ment of old-age msurance in Italy be understood. Brieily, the his- 
tory of the legislation concerning this mstitution is: The first law 
was approved on July 17, 1898, and the actual operations of the 
fund began in October, 1899. 

The fn-st amending act was approved on July 7, 1901, and the 
codified text of the law was promulgated by royal decree July 28, 
1901, and went into effect on August 1, 1901. 

The second general amending act was approved on December 30, 
1906, and the codified text was promulgated by the royal decree of 
May 30, 1907. Some of the important changes of this law did not 
go into effect until March 18, 1909, when the new constitution and 
the technical regulations of the institution were approved. 

Law of 1898.— The National Institution for Insurance of Work- 
men agamst Invahdity and Old Age as established by the law of 
July 17, 1898, is an institution for voluntary insurance open to all 
wage-workers who are citizens of Italy. The amount of contribu- 
tions is left entu-ely to the free will of the msured, except that a 
maximuni limit of 100 hre ($19.30) per annum is estabhshed, and 
contributions smaller than 50 centesimi (10 cents) are not received. 
These contributions are credited to each insured person's individual 
account, but, besides, additions are made to the individual accounts 
of all persons paying in at least 6 lire ($1.16) durmg the year. 
These additions are obtained partly from the interest on the endow- 
ment funds and partly from the annual revenues allotted to the 
institution. 

The endowment fund of 10,000,000 lu-e ($1,930,000) has been 
formed from two sources, contributing equal shares of 5,000,000 
lu-e ($965,000) each— the net profits of the postal savings banks and 
the fund of invahdated bank notes not presented for cancellation. 

aStatutoin esecuzione della legge (testo unico), 30 maggio 1907. I'ublished by 
Cassa Nazionale di Previdenza per la Invalidity e per la Vecchiaia d^li Operai. 
b Regolamento lectrico, etc., published by the Cassa, etc. 



CHAPTEB VII.— WORKMEN 'S INSURANCE IN ITALY. 1871 

In addition numerous other revenues were diverted to the treasury 
of the newly-created mstitution, to be used partly as annual reyZZ 
and partly to swell the endowment fund.^ Even from lelZZ 
revenues a portion must be diverted to the endowment fund for the 
nrst 10 years so as to brmg it up to 16,000,000 lire ($3,088,000) 

adSL'«lT ir'"'' '^ '^'^' P^"" ^^ '^''' "^ ^^^fi-t- --^ount of 
additional benefits is guaranteed to the insured persons They 

appear to be somewhat accidental, depending upon the revenu^ 

TuX of^n "''•'"'""; ^"' '^^^ invex^el/proportionate to S 
Sted OnHf '"'"'^' among whom the amount must be dis- 
tributed. Only the maximum limit, 12 lire ($2.32) per annum to 
each person, is established. ^ annum to 

The list of revenues diverted to this institution is very mterestin^ 
of trust funds are thus transferred, as follows («) 

yJu.\Tfi ^r\'^ "'"'"''''^ ^^' ($965,000) wa. taken from the 
^4 «n I T^ r'"' ^'"'^ ^^ accordance with a law of Apri 

1874, and canceled because of failure to present them for redemnS 
m accordance with the law of April 7, 1881, which disconS S 
compulsory circulation of these bank notes and established certS 
time hmits for their redemption m specie or treasury notes The 
amount of bank notes not presented for redemption Ldthere^^^^^^^ 
canceled by October 1, 1894, was 13,343,796 lire ($2 575^^1T T^^^ 

institution, therefore, amounted to less than one-half of the net^a^ 
of the Government from this operation. ^ 

The second fund of 5,000,000 lire ($965,000) was taken from thp 
avadable net profits of the postal savings banks/whSi C e e or^^^^^^^^^ 

incr"^^^^^^^ ~" "' ^^"^^"^ "-^ --^ed for the 

mcrease of the 10,000,000 hre ($1,930,000) endowment fund-(^) 

10 1893 ThTorf ^ '^'" ^T^^ "^ ^^^"^ ^^' P^-^^ on August 
31 89?* and if T ^^^^^f ^^ ^"^ ^^ circulation on December 

;^^icJaame d for 30 years were invalidate d according to the law of 



1872 



REPORT OF THE COMMISSIONER OF LABOR. 



May 17, 1863. These invalidated deposits are now transferred to 
the old-age insurance institution. 

(4) By the law of July 7, 1866, dissolving the reUgious orders, 
then- property was used to form the so-called reUgious fund. From 
the proceeds of this fund expenditures for pensions are made to 
members of these orders and for other reUgious purposes. Of the 
excess of the proceeds over expenditures, one-fourth is paid to the 
local communities where the property is located, and three-fourths 
revert to the State. Of this share, one-tenth was granted to the old- 
age insurance institutions. 

(5) AU other private grants, bequests, etc. 

The foUowing sources were designated as regular annual revenues: 

(1) A portion of the net profits of the i)ostal savings banks— for 
1897 and 1898, 30 per cent, and from January 1, 1899, 50 per cent, 
and in addition to this when the total deposits exceed 500,000,000 
lire ($96,500,000), 70 per cent of the net revenues attributable to 
that excess. 

(2) Fifty per cent of the net income from the deposits of court fees 
and similar court moneys deposited according to the law of June 
29, 1882, in the Bank of Deposits and Loans (for 1897 and 1898 only 
25 per cent). 

(3) Legacies reverting to the State. 

(4) The interest upon the endowment fund; and (5) all other 
revenues. 

These various sources of annual revc^nue and the interest on the 
endowment fund are expected to provide means for substantial 
increments to the personal accounts of the members. These accounts, 
carefully computed according to the detailed provisions contained 
in the law, form the basis for payment of pensions. 

Normally the accounts were to be Uquidated— that is, transformed 
into annuities when the member reached 60 or 65 years of age, and 
after at least 25 years have elapsed since the first payment. This 
rule would not permit the insurance of persons over 40 years of age, 
and for the first two years insurance for a shorter period (20, 15, or 
10 years) was permitted. This was subseciuently extended by the 
law of July 7, 1901, to December 31, 1903, and by the law of March 
13, 1904, to December 31, 1905. The conversion of the accumulated 
account into an annuity was to take place according to the ordinary 
insurance principles, and according to a special table based upon 
ItaUan mortality statistics. 

Under certain conditions payment of the entire value or part of 
the value of the accumulated account was payable in a lump sum 
instead of as an annuity. Also the annuity could be purchased 
with reserved capital or aUenated capital. 

Two forms of insurance are allowed, the plan of reserved payments 
and the mutual plan; the essential difference between these two 



CHAPTER VII._W0RKMEN'S INSURANCE IN ITALY. 1873 

plans being that in the former, in case of dp«tli h.f 

annuity is acquired, the accumXerpa» ^ '^ 

of the deceased, while in th^ i^.,^^^ / ,^^^ P«^^ *« the heu^ 

plan. As a matter of faot fh^ a;4v - according to the same 

appear, for t^LuJ:^^' Z''^^:^ZZ:~^ 

element of mutuaUtv in it Onl J ^^ . ^^^ °*^ ^""^ '''«° the- 

member are returned to ,'• i-t^Uaul^^^^ "' '""^ 

accounts are redistributed Im'g the olfmlb r T.?"' '" *'" 
of annuity nurrhfl-sahlA f«. „ *^ j members. The amount 

the mutuS plan but Lnl T"^ '''"°"°' '^ "'"^'^ ^'^'''^^ "«der 

more forcii^To ^l^ZCZZZl '^,Tr^ "^^^P''^^' 
accumulations in case of his ptmatrdelr ''^ '^""'^ '" '"^^ ^^ 

each';CrI;: — fol,r^^^^^^ P- -- -der 

X.0„.. o. ^^^^^^^ .OK «^P.K^™ ....„ .„. ...... 



Age at beginning of insurance. 



Annuity to begin at the age of- 



60 years. 



65 years. 



Mutual 
plan. 



25 years... 
30 years... 
35 years... 
*0 years... 



Reserved 
plan. 



til. 40 
8.36 
5.95 
4.07 



»7.87 
5.99 
4.45 
3.18 



Mutual 
plan. 




S21.08 
15.66 
11.37 
8.02 



Reserved 
plan. 



112.37 
9.50 
7.30 
5.-42 



on? oTd'^ig Itatr tSr *'^ system estabhshed wa. primarily 
nificant. if irrrmTtted tn^'"'''''?"' ^"' '"^""^^^ ^^^ ^^l 
accumulated Iccounts in li T T.*"''"'*^ "'' '^' ^asis of 
have elapseLLTthe be^innW 1 •'°^'''^'^' P™^**^'^ ^^^ y«a« 
invalids'^'fund wTs ttablZdY; S^ ad^fti:'';""'^ ^ ^''"^^ 
annuu, to invalids, but the sourcesT^S rntrs"td~e^ 

inircrinrchrnrwi~rr, *T'r '-^ ^^ '^'y '■ '^^' 

did not affect Sfe geneS ;Splt:ft,re^Tr^^^^^^ 

outlined above Th« .1. ^""''.'Pf ^ f *"« old-age insurance system 

Buruaiy ii, 1899, these notes were ordered taWon „„* t ■ 
lation on December ■? 1 Toni ti " "™^'^f<i taken out of circu- 

ing and not vT^Ztl^ 'f *°'°""* **^ ^"''*» '^''^^ outstand- 

g not presented for payment and canceUation by the end of 



II 



I 



1874 



BEPOET OF THE COMMISSIONER OF LABOB. 



1902 were deposited in January, 1903, as a voluntary interest-bearing 
deposit in the Bank of Deposits and Loans, to serve as a fund for 
redemption of the outstanding notes. The interest from tliis deposit 
is transferred to the old-age insurance institution for the increase 
of its endowment fund. 

2. A modification was introduced in the method of reverting to 
the old-age insurance institution fund one-half the value of such 
bank notes as should not be presented for redemption before June 
30, 1904. It was estimated by the Government that about 8,000,000 
lire ($1,544,000) worth of these bank notes were probably lost, and 
they were taken out of circulation. The law ordered, therefore, 
that the three banks of issue (Banca d'ltalia, Banca di Napoli, and 
Banca di Sicilia) pay to the Bank of Deposits and Loans the sum of 
8,000,000 lire ($1,544,000), proportionately to their amoimts of out- 
standing circulation. This fund was invested in 8 per cent Govern- 
ment bonds and divided equally, one-half being to the credit of 
the old-age insurance institution and one-half to the credit of the 
three banks named, proportionately to the sums contributed by 
them. This fund is to be held for the redemption of bank notes, 
and as they will become invaUd the deposit will be turned over, one- 
half to the old-age institution and one-half to the banks named. 
Thus the revenue from the sum had been anticipated nearly three 
years before the final invalidation of the bank notes. 

3. The regulations concerning the contribution from the religious 
fund have been stated above. The new law provided that within 
the five years beginning with the year 1901-2 these payments should 
constitute 2,950,000 lire ($569,350). 

While the above amendments referred mainly to the sources of 
revenue, others introduced some changes in the methods of insurance. 
The age of liquidation of accounts was reduced for female members 
from 60 to 55 years, and the period for accepting shorter time insur- 
ance was extended until December 31, 1903. Participation in the 
distribution of additional increments to their accounts was permit- 
ted to those members who have not paid in within the year the 
minimum of 6 lire ($1.16), provided the sum of payments made by 
them was not less than 6 lire ($1.16) multiplied by the years of mem- 
bership; regulations were provided for continuation of membership 
of persons who ceased to be wage-workers; the list of securities in 
which the institution might invest its funds was extended by includ- 
ing guaranteed railroad securities; and a few changes were introduced 
in the system of administration. 

Law of 1904. — A few additional changes were introduced by the 
brief act of March 13, 1904. The right to issue insurance for periods 
as short as 10 years was extended from December 31, 1903, to Decem- 
ber 31, 1905, as almost one-third of all persons insured had taken out 



CHAPTEB VII.— WOBKMEN 'S INSUBANCE IN ITALY. 1875 

j!)pukT^ ^""^ ^^^ ^^^'^ ^^ ^^^'^' ^"""^ *^''' ^""^ ^""^ evidently very 
The lists of permitted investments were further extended by includ- 
mg secunties of loan banks and urban real estate; the latter having 
been specifically prohibited by the law of July 17, 1898, which e^n 
requn-ed the mstitution to dispose of all real estate i^voluntaX 
acquired withm five years, and forbade the acquisition of buS 
even for its own use. The amount invested in real estate must not 
however, exceed one-fifth of the amount invested in government 

Amending Act op 1906.-While the preceding amendatory acts 
only slightly modified the provisions of the law of July 17, 1898 the 
act of December 30, 1906, substituted an ahnost enLi; new act 

ZT2ri9tr' '' "' "' '""^ '' "^'""^ '' *^^ consoHdld acJof 
On February 2, 1906, a bill containing an entirely new text of the 
whole law governing the old-age and invahdity insu^rance inst tution 
tutloS' ""^ the ideas of the administrative council of the ilst'- 
tution(«), was mtroduced in the lower chamber. The main changes 
proposed by this bill were as follows: changes 

The insurance for periods shorter than 25 years (thus enabling 
persons over 40 years of age to insure), permitted temporarUy in th! 
ongmal law and the temporary permission extended repeatedly 
proved so popular that the authors of the bill proposed to emS 
a permanent provision to that eflPect.(^) emooay 

fh Jr^'T'^' ^''i ^^'^^^^^ ^^' ^^'^ ^^ insurance, it substituted for 
the demand of a ump-sum payment for aU insurance for less than 

yeaS tinir ^^^ ^^^ ^^^^^^ ^^ ' ^^ ^'' ^^^^ ^^ ^^ 

rr.It^'T'''^ ^'''^. "^""'^ important change suggested was in the 
method of computing annuities. According to the previous legisla! 
tion, the accounts consisted of 6 and 7 items annuaUy. CedaUv 
m case of mutual insurance, when an amiual redistrfbutiof of the 
accounts of deceased members was required, veiy elaborate rules for 
such redistribution were necessary. In reahty the system was found 
^ work very poor y. In many cases of death notice failed to reach 
the institution, as m a case of mutual insurance there was no material 
consideration to prompt the relatives of the insured to give such 
notice. The computation of interest on aU the accounts was also a 
very complicated process. The bill proposed therefor the substltu^ 
^ter^ tT ;:r"'^ --^-li^y table for the mutual insurance and ^1^ 
^nterest^^ a computation of the ann ui^^alu^ i^ 

a See Bollettino di Notizie buI Credito e sulla Previdenza, 1906 ' 



1876 



REPORT OF THE COMMISSIONER OF LABOE. 



* 



dividual payment or of any other addition to individual accounts, so 
that the computation of the total annuity may be quickly computed 
by addition of the separate annuity items. In case of postponement 
of the annuity untH 65 years of age, a recomputation on the basis of 
the tables of mortality and probabihty of life could be easily accom^ 
plished. 

The third important change proposed consisted in strengthening 
the invalidity pensions. The actual determination of the amount 
was left to the administrative councH. The invalidity fund, amount- 
mg to only about 2,000,000 Hre ($386,000), did not peniiit of very 
large annuities. The Government had previously announced its 
intention of allowing the invahdity fund a special subsidv of 
10,000,000 lire ($1,930,000). Upon the basis of this increase in 
the mvahdity fund, the bill proposed to estabhsh a minimum inva- 
lidity annuity of 120 Hre ($23.16). A bill introduced in the Cham- 
ber of Deputies on March 20, 1906, also included these three 
important proposals and several other minor changes which event- 
ually were embodied in the law.(«) 

On May 17, 1906, the government bill was introduced hi the Cham- 
ber of Deputies. The cabinet having undergone a reorganization 
soon after that, practically the same bill was remtroduced by the new 
minister of agriculture, industry, and commerce, supported by other 
new mimsters. On November 27, 1906, the biU was referred to a 
parhamentary commission, which brought in its report, with very- 
few changes, on November 27, 1906. It became a law on December 
30, 1906, without any deviations from the text as amended by the 
commission. 

The essential changes introduced by this act were as follows: 

(1) The material simplification of personal accounts, as explained 
above, by substituting tables for computation of the annuity value 
of each payment and benefit, for a complex annual redistribution 
and computation of interest upon all the accounts. 

(2) The establishment of a minimum invalidity annuity of 120 
lire ($23.16) by means of the addition of 10,000,000 lire ($1,930,000) 
to the invalidity fund. 

(3) The part of the net profits of the postal savings banks, reverting 
to the old-age institution, was definitely established at 70 per cent 

(4) The extension of all the benefits of membership in the institution 
to such independent producers as do not pay over 30 lire ($5.79) per 
year in taxes. 

(5) The maxunum limit of annual contributions previously put 
at 100 Hre ($19.30) was eliminated. The minunum was raised from 
50 centesimi (10 cents) to 1 lira (19 cents). 



» BoUettino di Notizie eul Credit© e eulla Previdenza, vol. 24, 1906. 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1877 

^^! I^!u '"/^ '"^ combination with the preceding one evidentlv 
created the danger of growth of excessively large accounts To 

rorHrTVlpJ -'''' - acq'uired^nSrS ove 

rr^ ^rJfP ^^'^ debarred from further benefits. 
(7) While the normal age of maturing of annuity was left as before 
an earher age of 55 years was established in certain ki^c^s ^f S 
requiring severe physical exertion, such as mining Xst furnlcl 
foundries, steam boilers, glass factories, and railroTd ser'ca " ' 
Q 1 rJ^^'^ ^'^^'" ^''''"^^^ ^^^> ^ ^^^her minunum of pavments 
ot ^^l'^^^ '^'''"^ ^^ ' ^'^ (^1-1^^^ ^-« required. ^^^^^^^^ 

(9) The reqmrement of 25 years of insurance was left in normal 
cases; but payment of annuities before the expiratil of tLTi 
was permitted on condition of higher rninL^Tr^^^^ 

the required age was reached. ' P"^"^*"®*! 

(10) The financial organization was somewhat changed A m^m 
bers' fund was added to the existing four funds, the enlowmentS" 
annuity fund, invalidity fund, and reserve fund- «nrtTI^ f* ' 

L 1 I. / ^^ ^^r® ^^^^ ^^ the discretion of the administrfltWo 
councU but must not be less than 30 per cent, to be usi SX^arv 
proportions to mcrease the endowment fund the invaU^Cd an^ 
the extraordinary reserve fund. ' 

r J^^^ ^^^ maximum amount of the annual oidinarv benefits wa. 
reduced from 12 to 10 lire ($2.32 to $1.93) 

a Jv'wTl"^ '"* "^ December 30, 1906, went into effect immedi- 
ately, with the exceptions indicated below, and the codified™ xt of 
the law was published by royal decree of May 30, 1907 

Excepted were (1) the provisions as to changes in'fh. .a ■ ■ 
trative council anH r9^ i\L u • , '''^'^'^g®^ ^ the admims- 

. ,:.. '^ouncu and (2) the changes m the methods of keening fh« 
individual accounts and computing the value of ann .S^k i 
were made dependent upon the promulga'on of I ZcZtH^t 
and regulations for the old-age insurance institution The'dmiSr 

ber, 1907 adopted the texts of both the constitution and the re^uk 
tions, and they were approved by royal decree of MaXs iSI 

ANALYSIS OF LEGISLATION IN FORCE. 

The institution is officiallv known a.« "Tl.» \r„t;„ it .-. .. . 
the Insurance of Worker. s^ZTlZJZ'':T£JtT7''' 



1878 



REPORT OF THE COMMISSIONER OF LABOR. 



labor for time wages or piece wages, or on their own account provided 
they do not pay more than 30 hre ($5.79) per annum in taxes of any 
nature. Married women may be insured without the permission of 
the husband and minor persons without the permission of parent or 
guardian. 

The institution may carry on an old-age insurance business among 
other classes of the population (so-called popular annuity insurance), 
but under special conditions, which will be explained presently. 

When a regularly insured person ceases to satisfy the above-men- 
tioned requirements, he is transferred to the popular insurance 
branch. 

Forms of Insurance.— At the time of taking out the insurance the- 
insured person must select one of the two recognized forms of insur- 
ance; the mutual form or the form of reserved contributions. In 
the first form, the payments of the insured are not returned; under 
the second form the actual value of the contributions made by the 
insured or by other persons for him are returned to his dependent 
relatives according to the following rules : 

The surviving consort receives the whole amount when neither 
children nor relatives in an ascending line survive. When children 
survive, the consort receives 40 per cent and the children 60 per cent; 
when no children, but relatives in an ascending Hne survive, the con- 
sort receives 60 per cent and the latter 40 per cent. 

When no consort survives the children receive the entire amount in 
equal portions; and in the absence of either a consort or children, the 
entire amount reverts to the relatives in an ascending line. Finally, 
when no consort, child, or ascending relative survives, tlie amount 
goes to the other descendants and brothers and sisters under 18 years 
of age, or disabled because of some physical or mental defect and who 
were supported by the insured while living. 

The time for making application is limited to two years, and if no 
legal heirs under the above rules are disclosed within that time the 
amount subject to repayment is turned over to the invalidity fund. 

Contributions of Insured. — No regular premiums are exacted, 
the amount of contribution being left entirely to the 0})tion of the 
insured, except that contributions smaller than 1 lira (19 cents) are 
not accepted, nor are contributions including fractions of a Hra 
accepted. This minimum limit of a single contribution is quite high, 
and may be claimed to be too high to stimulate the habit of small 
savings. To meet this difficulty the regulations provide for a method 
of making smaller savings by means of postage stamps. For that 
purpose special stamp cards are provided which are distributed with- 
out cost by the branches of the institution and through post-offices. 
These cards are ruled into squares, where ordinary postage stamps 
may be pasted until a full card represents a saving of 1 lira (19 
cents), and may be handed in instead of cash. The accounts are sub- 



CHAPTEK VII.-WOEKMEN'S msUBANCE m IXALV 1879 

9 lire ($1.74) for those In th/f f '"''' ^""^ ^' ^«^ ^'°'"«'». -^d 

' expires at the age of SSyeait «-"Pations whose insurance 

It is sufficient, however if ihc. „^^ 

aU the elapsed yeZZtML^h- '^^ *'°°"°* "^ contributions for 

tions for the 1 J~o not '^"""^'"-'^i' «-«« if the contribu- 

ip)tuTrd\ru:;rsr;;'T- '--''' ^- ^^^^^^ 

between 25 years and th^ nuttr "fTea^ oTt^ '''"'' *'^ ^^'^^''''^ 
. Accounts op Members -The conS. '°'"''*°'^ P«"«d. 

individual accounts of the insured 1 .5°°' *"" "''''*^^ *" ^^e 
the new law, which have X i^to ^^7 T *° *''" ^'"^^''^ «' 
accounts are to be ve:y inch sTmnler h! ^^ "'1 ''"''''^y' '^^^ 
were six classes of entrieffor th.^ ^ \f heretofore, when there 
those insured with rep^meS of te^ -^"^ ^^'^ ^^« ^"^^ri^^ for 
each payment made is TnTeredle vl^f 2 ""' "' '^^*^- "^^^^ 
the normal annuity age purchlaWrf t f°°"'*^'' ^ ^^^ ^'th 
same rule applies to alJ benefit oTvtl "' 1 *u "''" P*^'"^"*- The 
individual accounts. P^J^ents which are granted t9 these 

Of course, the annuity equivalent nf .o i. 
computed independently eSlSr tIT ^^^"^^^ """^ °°* ^e 
such computation, and thie tTbL T U ' """"^ ^^ P^-^^^^d for 
probabihty of life ^t the t mTof il- "''", ,r*" ^^'^^^''^'-ation the 
at the time of payment, ^Ihl T.^tStluelf T'''"' '^"^ '""^ ^- 
time of maturity of the nension ^^)T T " P^^^ent at the 

interest is accruing uponT " ''""^ "P"'^ *^« ^^^g^h of time 

of insured. Different tables are 'nlc Jat T f *'! ^^""^ ''In- 
forms of insurance necessaiy, therefore, for the two 

(wSrermuruSTwrtL'e^eTc'T??^ ^'^ ^""^ °^ -™ 

at the time of taldng outXinlran " T^ "^"'* *»" determined 
make a change from one form to X M ' "J'^'}"'''' '^^y arise which 
such conditions the new regltLn/n * '; ''T**''^- '^'^ P^^^^^e for 
to the reserved-payments Sn to th^«T ^ *°^' ^"'" *^« °»"*"«'l 
within one year'aL ma:? a^e or ^rt'e^ ^^^^^^ f ^'e- of age 
recomputation of the existing crTdifs To t? ^'^ " '^'^' "^'^ 

amount of payments made bv f bf • . accounts, so that the 

becomes avaiJble to Ct^^ ^^l^TTLn'' ^''^ '''"^'^ 

67725'>-voi, 2-11 25 ' ^"^^^e^' the 



1880 



EEPORT OF THE COMMISSIONER OF LABOR. 



insured does not complj- with these requirements, the cliange has no 
reserS^^ ^"^ *"^^ ^^^ payments subsequently made arc 

On the Other hand, the change from the reserved plan to the 
mutual plan .is permitted unconditionally and the annuity value of 
tne old payments is recomputed. 

Additional BENEFrrs.-In order to stimulate the saving habit and 
also to mcrease the value of the pension, the old-age insurance insti- 
tution contributes certain additions to the personal accounts. All 
persons msured according to the law are entitled to receive certain 
additions provided they have compUed with the requirements con- 
cerning the minimum annual payments, as explained on page 1879 
and on the other hand have not accumulated an annuity of over 1 000 

r, =ni^f Pf *™"°'- ^° addition, the old qualification of the'law 
ol 1898 has been perserved, that such insured workmen, for whom 
some special old-age and invahdity provision has been made either by 
the btate, provincial government, communities, or any other public 
or pnvate employers, are not entitled to any benefits. The amount 
of the ordmary benefit payable depends upon the resources available 
and IS determined by the council, but must not exceed 10 lire ($1 93) 
per annum for each insured person. In a.ldition special benefits ' are 
given to those msured for less than twenty-five years and for those 
in collective insurance. 

From the current revenues at least 30 per cent must be deducted 
by the administrative council for distribution, according to the 
judgment of the councU, among the endowment fund, the special 
reserve fund, and the invalidity f un<l, of which more will be said ; the 
rest is utilized for payment of benefits to the accounts of the insured 

1.IQUIDATION OF ACCOUNTS.— Each personal account may be liqui- 
dated m one of two ways, either by death of the insure.! or by the 
maturity of the insurance at the specified age. In case of death 
before maturity of the insurance, the deposits in case of mutual insur- 
ance are not repaid, and in case of insurance with reserved payments 
taey are repaid according to the rules stated on page 1878 

NormaUy the pension matures at the age of 60 for men and 65 for 
women, and after at least 25 years have elapsed since the beginnineof 
the insurance. The liquidation may be demanded at the age of 55 
years by persons employed in mining, furnaces, glass factories, foun- 
dries, m operating steam boUers, in raih-oad services, an.l in other 
industries to be determined by royal decree. By such decree firemen 
tax controllers, and watchmen, appointed by communities and prov- 
inces, and attendants in hospitals and insane asylums, were included. 

1 his right to receive the annuity at the earlier age of 55 is preserved 
only by those who at the time are stiU employed at one of these 
exceptional trades. Application for the insurance to mature at the 
age of 55 must be made within one year from the time of insuring 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1881 

or from the time of employment at one of these occupations, if the 
person had been insured before. 

The liquidation of the accounts may be eflfected and the annuity 
granted at the age indicated, even if less than 25 vears but at least J 
years have elapsed from the beginning of the insurance ; i. e., in uran « 
may be taken by persons over 35 years of age but not ove; 50 yea " 

In aSdltronTo tr* "T'^ "''' *'^ '""^"'"^^ ^P^'"' requiremen" 
in addition to the usual mimmum premium he must pay annuallv 

as many lire as years are missing to complete the twenty-five year 
period; i. e., when the insurance is to run only 10 years, the nsured 
pei^on pays additional 15 hre ($2.90) per annum; when the in "Ze 
IS to last 15 years, he pays additional 10 lire ($1.93) per annum The 
general rule that excess payments in one year may serveTo cover 
deficiencies m payment of subsequent yea'rs applies lo to thIL 
additional payments. Persons insured for such shorter periods m^S 
cZIu ''1?;f 'T' ."« to be determined by the admbistrSive 
WH )l ''^"''*^*'°° *°d granting of the annuity may be de! 

f erred upon the request of the insured until the expiration of 65 yeat 

PENsiONTABLEs.-TheamountofpensionsgranLforthe payment 

tLl ?^"T'^ ^^''^ '^' ''°^' *'« g'^«« i" the foUowingTabl 
or both plans of insurance, the mutual plan or that of aUenated caoi 
al, and the reserved-capital plan. In the original tables the valiie of 

the annual pension purchased by the payment of a premium of ifira 

may mature. Only the columns for pensions maturing at 55 60 
65, and 70 years are here reproduced. The difference in the amount 
of pensions for the two forms of insurance is found to be considemble 
and this difference is seen to increase with the higher age of maturitv' 
as at that age the chance of the madirino. «f 7h • ™"turity, 

smaller and the chance of deathtreruTt^mlt^'grt^r'ThT 
at the age of 12, the value of the pension purchased for «7f r ' 
at the age of 55 would be 51.2 cen'ts on Eut^X In and 44^^^^^^^^ 
or 14 per cent less, on the reserved-capital plan while if VL^ ' 

m67 and on the reserved-capital plan $2,163, or near!, 19 per cent 

twl^orii!"?""^ ''' *•"' *'"''"''* ''^ P*"^'""^ «««"r«d for $1 under the 
two forms of insurance rapidly decreases as the age at which the pav 
ment is made increase's TVi.ic f^- lu & »>• vyiui,u me pay- 

of 55 v»«,! tV J t , ' t'*' *^^ pensions maturing at the aee 

of 55 years, the difference for payment of $1 made at the age of^2 

at he:7c;f 4V2\:^:s"'aft'h'' ''-r' ** *'^ ^^^ «^ 3o:3Tcit 

age of 54 1 of ,Ti; T *^' °^ ^^' ^'^ ''^ ^ *'*"»*; ""^d «* the 
amounts t;rbouf,i Tk "" P^'^^'^'^ges, however, the difference 
to decrlse In n J °' ^7 T' T'^ '^^ ''^^ °^ ^5, and then begins 
great:raT the'rrt™ ' ^'^ ^'^''"^^^^^ "^ ^"^^ -"^^^ P'^ - 



H 



1882 EEPOBT OP THE COMMISSIONER OF LABOB. 

^^^^'^^^^^ Regolamento Tecnico della Cassa Na«onale di Previdenza.) 



Age at time of pur- 
chase (years). 



Amount of annual pension purchased for $1 under- 



Mutual plan: Maturing at age of— 



12. 
13. 
14. 
15. 
16. 
17. 
18. 
19. 

20. 

21. 

22. 

23. 

24. 

25. 

26. 

27.. 

28.. 

29.. 

30.. 

31.. 

32.. 

33.. 

34.. 

35.. 

36.. 

37.. 

38.. 

39.. 

40.. 

41.. 

42.. 

43.. 

44.. 

45.. 

46.. 

47.. 

48... 

49... 

50... 

51... 

62... 

53... 

54... 

65... 



55 j'ears. 60 years. 



56.... 
57.... 
58.... 
69. . . . 
60.... 
61.... 
62. . . . 

63 

64.... 

65 

66 

67 

68 

69 



$0,512 
.493 
.474 
.457 
.439 
.423 
.406 
.390 
.375 
.360 
.346 
.332 
.318 
.305 
.293 
.281 
.269 
.258 
.248 
.238 
.228 
.219 
.210 
.201 
.193 
.185 
.177 
.170 
.163 
.156 
.149 
.143 
.137 
.131 
.125 
.120 
.114 
.109 
.104 
.100 
.095 
.090 
.086 



10.798 
.768 
.740 
.712 
.685 
.659 
.634 
.609 
.585 
.561 
.539 
.517 
.496 
.476 
.456 
.438 
.420 
.403 
.387 
.371 
.356 
.341 
.327 
.314 
.301 
.288 
.276 
.266 
.254 
.243 
.233 

.223 

.213 

.204 

.195 

.187 

.178 

.170 

.163 

.155 

.148 

.141 

.134 

.128 

.121 

.115 

.109 

.103 



65 years. 



11.363 
1.313 
1.264 
1.217 
1.171 
1.126 
1.083 
1.041 
1.000 
.960 
.921 
.884 
.848 
.813 
.780 
.748 
.718 
.689 
.661 
.634 
.608 
.583 
.559 
.536 
.514 
.493 
.472 
.453 
.434 
.415 
.397 
.381 
.364 
.348 
.333 
.319 
.305 
.291 
.278 
.265 

.253 

.241 

.229 

.218 

.208 

.197 

.187 

.177 

.167 

.157 

.147 

.138 

.128 



70 years. 



$2,667 
2.568 
2.473 
2.380 
2.291 
2.203 
2.118 
2.0.35 
1. 955 
1.877 
1.801 
1.728 
1.658 
1.591 
1.526 
1.464 
1.404 
1.347 
1.292 
1.240 
1.189 
1.149 
1.094 
1.049 
1.006 
.964 
.92* 
.885 
.848 
.812 
.777 
.744 
.712 
.682 
.652 
.624 
.596 
.570 
.544 
.519 
.496 
.471 
.449 
.427 
.406 
.385 
.365 
.345 
.326 
.306 
.287 
.269 
.2.51 

.2;« 

.216 
.200 
.184 
.168 



Reserved-capital plan: Maturing at ags 



55 years, j 60 years, 



$0,440 
.422 
.406 
.390 
.374 
.360 
.345 
.332 
.319 
.306 
.294 
.282 
.271 
.260 
.250 
.240 
.231 
.222 
.213 
.204 
.196 
.189 
.181 
.174 
.1('>8 
.161 
. 155 
.149 
.143 
.138 
.132 
.127 
.123 
.118 
.114 
.109 
.105 
.102 
.098 
.094 
.091 
.088 
.085 



$0,675 
.648 
.622 
.597 
.573 
.550 
.528 
.506 
.486 
.406 
.447 
.429 
.412 
.395 
.379 
.363 
.349 
.335 
.321 
.308 
.295 
.283 
.272 
.261 
.250 
.240 
.231 
.221 
.212 
.204 
.196 
.188 
.180 
.173 
.166 
.160 
.153 
.147 
.142 
.136 
.131 
.126 
.121 
.117 
.113 
.109 
.105 
.101 



66 years. 



$1. 131 
1.085 
1.040 
.998 
.956 
.917 
.879 
.842 
.807 
.774 
.741 
.710 
.681 
.652 
.625 
.598 
.573 
.549 
.526 
.503 
.482 
.462 
.442 
.423 
.405 
.388 
.371 
..355 
.340 
.325 
.31-2 
.298 
.285 

.273 

.261 

.250 

.239 

.229 

.219 

.210 

.201 

.193 

.185 

.177 

.170 

.163 

.156 

.150 

.144 

.1.38 
133 
128 

.124 



70 yean. 



$2,163 
2.073 
1.9H7 
1.903 
1.823 
1.746 
1.671 
1.6U0 
1.531 
1.466 
1.402 
1.342 
1.283 
1.227 
1.174 
1.122 
1.073 
1.03JI 
.980 
.937 
.895 
.856 
.817 
.780 
.746 
.711 
.678 
.647 
.617 
.68» 
.561 
.636 
.510 



.463 

.441 

.420 

.400 

.381 

.363 

.346 

.329 

.313 

.298 

.284 

.270 

.257 

.245 

.233 

.223 

.212 

.203 

.194 

.186 

.178 

.171 

.164 

.158 



.inZH """■ O'' P*=««iONs.-NormaIly ,he computation of pen- 

sions IS a very simple process according to the new law, being accom- 

entries in the account of the individual. In exceptional cases a lump- 
sum payment may be substituted for the annuity accord ngtoThe 
provisions to be included in the new regulations."^ These "rovkiin^ 



I i 



CHAPTER VII.— WORKMEN 's INSURANCE IN ITALY. 1883 

c'dT SesT: Srol.Tt'^ '"^"^r" '^ ^•^^ '"--^ -'•'^-- ex- 
ceeds 365 hre ($70.45), he may choose one of the three plans-f n 

with the msurance mstitution and receive the interest in ^MU T 
the annuity during life, the capital to be paid to £ heiS at lath 
. If the annuity acquired amounts to leL than 60 lirr«li 58 th. 

o': f» .ir«^ -72 .r:,* ^ir:-' '»"- '° '— 

StSe."^ '"""^ '""^ °^ 10,000,000 lire ($1,930,000) to be paid by the 

(h) Payments from persons or institutions responsible ..nHpr ih 
law for the support of the invalids responsible under the 

(c) Annual contributions from the current revenues. 
^Z^CXirnr '"''''''' ^^^' "^-^^'^- °^ P^>--ts and 

givet ^:\z^jz^^^ "^ '""^ ^"''^ °^ '^^-^- -<^ ^^^- 

urJt 'P'°"°'°*^V''" (*1'»30,000) fund is to be paid from the treas 
to'loTo i7. '""' "'^""'^ installments from the'budgets of 190^7" 

reg^uLrn?trtS;™vX^^^^^^^ ^^« -- 

je^^ eh earnings of T^ to leS^n ^ thilSt^^bVuS 
JZf vrl^" '° '^^ "*"'" occupation and locality. EvicSce 
bvStv"" *^ ""T ^ ^™'^^«^ ^tl' '^' appliiltion for 1 
"Ss L'TZ'trel't ^^'^--r"^* incIude'Ltiiicates from 

instit, iL J • ^ addition, the admmistration of the 

Son 7 r'^^' * 'P^*=^*^ '"^'I'^al examination. The rdminis 

tration may declme to grant the petition for an invaliditv neXn 
The msured may appeal from the decision of the oZtfZ a'dS" 



1884 



REPORT OF THE COMMISSIONER OF LABOR. 



trative council of the insurance institution, but the decision of the 
council is final. 

If the annuity acquired through the minimum payments and the 
regular benefits is less than 120 hre ($23.10) it is increased to that 
amount from the invahdity fund. Any annuity acquired by means 
of payments over and above the required mmimum is added to this 
120 lire ($23.16) annuity. 

The following classes of insured persons are deprived of the light 
to receive the subsidy from the mvahdit}^ fund above mentioned: 
(1) Persons whose invahdity dates back of the time of commencing 
the insurance, (2) persons who have insured themselves at the age of 
over 50, (3) persons who have become invalids either through mali- 
cious intent, alcoholism, or through criminal misconduct, (4) those who 
became invahds through an industrial accident and have received, in 
virtue of the accident insurance law, a compensation corr(isponding 
to a loss" of at least 50 per cent of working capacity, and (5) persons 
admitted to an insane asylum at public expense. 

Collective Insurance. — In order to encourage workmen's 
mutual benefit societies to insure their members collectively the 
institution is permitted to grant special benefits to persons thus 
insured, though such insurance may also be contracted for in accord- 
ance with the ordinary regulations concerning benefits. The special 
conditions must be stated in the insurance contract. 

If in such insurance agreement the society contracts for immediate 
pensions to such of its members as have reached the minimum age for 
granting annuities (55 or 50 years accorduig to the sex and occupa- 
tion), then to each such pension the institution adds an animal bonus 
of 10 lire ($1.93), but if the original pensicm was less than 10 lire 
($1.93) the annual bonus shall not exceed the amount of the pension. 

The institution may also contract to assume the management of 
private and pubhc establishment funds for old age and invalidity 
relief. The special conditions of each such contract must be deter- 
mined by the administrative coimcil and approved by the Government 
in each individual instance. 

In view of the evident intent of the law to stimulate thci collective 
insurance of workmen against old age and invahdity tlirough the 
instrumentality of the mutual benefit societies, the regulations con- 
cerning this form of insurance as contained in the Eeglamento Technico 
are of great importance. 

Such collective insurance is permitted to associations recognized 
under the law of April 15, 1886, and to other unincorporated associa- 
tions, provided a majority of their membership conforms to the 
requirements of the law as to persons entitled to its benefits. Only 
insurance in which all members of an association are embraced is recog- 



fl 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1885 

nized as collective, though the association may except those of its 
members who are not workers or who are over 50 years old. 

In order to acquire the right to the special benefits offered to collec- 
tive insurance, the associations must make the insurance compulsory 
for its members by an amendment to its constitution, and must make 
annual contributions which, per capita, will not be smaller than the 
normal minimum contributions required. 

Wlien these conditions have been comphed with the national old- 
age insurance institution ^\dll contribute a special benefit of 1 hra 
(19 cents) per annum in addition to the normal benefits to which the 
insured is entitled. Wlien the association provides for insurance of 
its older members for a briefer period, these members receive a special 
benefit of 2 hre (39 cents). 

Such members as do not possess the qualifications of workmen or 
petty independent producers, entitling them to the insurance under 
the workmen's roster, must be entered on the roster of ''popular 
annuity insurance." If a member is expelled from the mutual benefit 
association he loses his right to receive the special benefit for col- 
lective insurance, beginning with the year of his expulsion. 

While ordinarily insurance is not written for a period briefer than 10 
years, i. e., is not written for men over 50 years and women over 45 
years of age, yet the occasion may arise that an association wliich has 
been conductmg old-age insurance among its benefit features would 
desire to take out collective insurance with the national institution, 
and the presence of members over the maximum age might prove 
very embarrassing. The regulations provide, therefore, that under 
such condition, males over 50 years of age and females over 45 may be 
insured for a period less than 10 years, but so that the annuity does 
not mature before the age of 55 for the females and the males*^in the 
excepted trades and not before the age of 60 for all other male 
workers. 

For those members who have already reached these age limits 
annmties may be purchased by the association, and in such cases the 
national institution grants an annual bonus to each annuity, the total 
annuity to be not less than 60 lire ($11.58). 

If such associations are paying annuities at the time of taking out 
collective insurance they may transfer such obligations to the national 
institution, and the capital cost of such annuities is determined on the 
basis of either the tariff for workmen's insurance or the tariff for 
popular insurance according to whether the pensioner is a workman 
or not. All these benefits conferred by the new regulations upon col- 
lective insurance are extended to all mutual associations insured at 
the time these regulations go into effect. 

The mutual benefit associations which have insured their member- 
ship may be authorized to perform for then- members the simple 



f 



1886 



BEPORT OF THE COMMISSIONER OF LABOR. 



financial operations of a branch office. Payment for such services 
must be Hmited to a per capita fee for all members in good standing 
for whom the minimum payments were made, and this per capita fee 
must be imiform for all associations. 

The same conditions of collective insurame may be extended by the 
institution to employees of industrial undertakings or pubhc enter- 
prises. 

Other Forms of Insurance.— Compensation from private 
employers or accident insurance companies, due to workmen disabled 
through industrial accidents or to workmen who became invalids 
because of old age or disease, may be deposited with this old-age 
insurance institution for conversion into an annuity. 

Other forms of insurance business may be permitted to the old-age 
insurance institution by royal decree, but the net proiit-s of such 
transactions must go to increase the normal annual revenues of the 
business. 

Among these regular branches of insurance is tlie so-called ''popular 
annuity insurance," open to all persons without the limitations 
estabhshed for the main line of insurance carried by the institution. 
Under this form of insurance none of the special bonuses or benefits 
previously described are granted. Whenever a person insured under 
the workmen's insurance plan loses the qualifications entitling him to 
such insurance (e. g., ceases to be employed and becomes an employer) 
the special bonuses and benefits to him are discontmued and the entire 
amount credited to him is transferred to a new account under the 
''popular insurance" plan. On the other hand, if a person insured 
under the ''popular insurance" plan acquires the qualifications neces- 
sary to entitle him to insurance under the "workmen's insurance" 
plan, his account is so transferred and he acquires the right to the 
special bonuses and benefits, and the time of his insurance under the 
other plan is taken into consideration for the purposes of the Hquida- 
tion of the annuity. 

Financial Organization.— The following special funds are pro- 
vided in the financial organization in order to preserve the financial 
soundness of the institution: (a) The endow ment fund as described 
above; (b) the fund of the insured, consisting of the payments made 
by the insured persons or for them and benefits paid to their accounts; 
(c) the annuity fund, from which mature annuity accounts are paid! 
At the time of granting each annuity a corresponding amount is to be 
transferred from the fund of the insured to the annuity fund. At 
least each five years a technical balance of these two funds must be 
struck. 

(d) For the guarantee of these two funds a special reserve fund is 
created. Into this fund go any possible excesses found at the time of 
striking the balances of the two preceding funds, annual contribu- 



) 






CHAPTER VII.— WOEKMEN 'S INSURANCE IN ITALY. 1887 

tions from the current revenues, and other sums indicated in the 
regulations The purpose of this reserve is to cover all possible 
deficits m the fund of the insured and in the annuity fund 

(e) Finally the invaUds' fund, the constitution of which 'has been 
explamed m conjunction with invalidity insurance 

The payment of annual contributions from the regular revenues of 
the institution mto the special reserve must be discontinued when 
the reserve amounts to one-tenth of the sum of the amounts credited 
to the fund of the insured and the annuity fund 

If the amount of the special reserve is not sufficient to meet the 
deficits ansmg in these two funds, these deficits must be covered by 
heavier contributions from the annual revenues either within one or 
coundl ^^^''' "" ^'"'°'"''*''*'^ ^''^^ *^« judgment of the administrative 

H K?l^"°.''' "^ ^^^ institution are to be invested in Italian national- 
bnnl r ' . /l S^^^™'"^"* »'• guaranteed securities; raUroad 
bonds guaranteed by government subsidies; trusts of institutions for 

,.lTl ' r'"' "-^ P'^^^'^i^J *«d communal governments and of 
undertakmgs for irngation and improvement woite; in urban real 
estate; mt^rest-bearing deposits; or loans for construction of work- 
ThT ^„t7"'°g« «'-.'°°rtg*ge bonds of undertakings for this purpose. 
The nvestments m real estate must not exceed one-fifth of all 
investments. 

riv^nT ^.^"^^^^-The cooperation of the postal-savings banks is 
g^ven to the old-age msurance institution without compensation 
This mcludes the operations for admission to membei^hip, the recent 
of contnbutions, and payment of annuities and other moneys 

i<ree postage privileges are extended to the institution in'its corre- 
spondence with pubUc institutions, its branches, propaganda com- 
mittees, benefit associations, and the insured pei^ons 

« J^T.^>''^'^'°'''~'^''.' ?''*'''°*' ^^'^•■^^ *°d Invalidity Insur- 
ance Institution IS granted the same freedom from taxes as the postal 
and other savmgs banks, such as special insurance taxes, register 
fees stamp dues, and taxes on legacies bequeathed to the institution 
Ihe annual mcome from investments other than state or guaran- 
teed securities are free from the income tax 

an^L^J" T"^''' ^r°*'"^ ""'^^^ *^^ "workmen's insurance" plan 
Hre aoZ m ^"'^ " --™nce" plan, when not in excess of 1^500 
lire ($289 50) are exempt from the income tax. The payments 

Hanc'^texr " '^^^^'^'^ °'^°''''' ^'^ ^''"'"P* f™m inheJ 

arf r„r''i,?''f r'^' ^^^-The annuities granted by this institution 

Tt^7o^^ ''^T "' '^'^""■^' ^'^^^P* ^^^ «^«««s over 400 lire 

($77.20) per annum To prevent such cession, payments may be 
made to representatives of the member only in case of sickness cer- 






1888 



EEPOET OF THE COMMISSION EE OF LABOE. 



I 

I i 



tified to by a physician or in case of any other obstacle certified to 
by the local authorities. 

Administration.— The National Old-Age and Invalidity Insurance 
Institution is autonomous in the sense of having an administrative 
machinery entirely separated from the General Government, and no 
obligations, except such as are definitely specified, are assumed by 
the Government. While the details of the administratitm are deter- 
mined by the constitution, the law establishes the following demands: 
The main administrative body is a council appointed by royal 
decree, the number of members of the council being determined by 
the constitution. According to the law, one-thu-d of the member- 
ship must consist of representatives of workmen insured; there 
must also be representatives of savings l)anks and other corpora- 
tions which assist the institution and of cooperative associations 
whose membership is insured. In addition the council includes one 
representative from each of the following ministries: Agriculture, 
finance, posts and telegraphs; and finally, the director general of the 
Bank of Deposits and Loans and the director of the Bureau of Labor 
of the Ministry of Agriculture, Industry, and Commerce, are ex officio 
members of the council. 

This council prepares the constitution of the institution, prescribes 
conditions for the establishment and administration of branch offices, 
and also the technical regulations and the tariffs for the computa- 
tion of annuities; but the constitution, regulations, and tariffs must 
be presented for consideration to the msurance council and the coun- 
cil of state, to the ministers of agriculture, of finance, and of posts 
and telegraphs, and must be approved by royal decree. The same 
conditions regulate the amendments of these acts. 

The institution is under the supervision of the Ministry of Agricul- 
ture, Industry, and Commerce, to which all financial reports and 
balance sheets must be forwarded. The technical balances, which 
must be prepared every 5 years beginning with January 1, 1908, 
must also be presented to the Ministry of Finance. 

The details of administration are further regulated by the consti- 
tution, which was published by royal decree of May 24, 1902, and 
amended on September 2, 1904, to conform to the changes intro- 
duced by the law of March 13, 1904. The text of the new constitu- 
tion, proposed by the council on December 21, 1907, was adopted 
without any material changes on March 18, 1909. 

According to the constitution, the administrative council governing 
the institution consists of 23 members— 18 appointed by the Crown, 
3 ministerial representatives, and 2 ex officio members. Among the 
18 members appointed by the Crown there must be 6 representatives 
of the insured workmen, 2 from savings banks, and 2 from benefit or 
cooperative societies insuring their membership. The period of serv- 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1889 

ice is 3 years, with right of reelection, one-third of the member- 

convenes at least once m 3 months. As is customary, the councU 
directs the general policies, issues regulations, app^r^ves 3s 
appoints the clencal force, etc., whHe the executiv; work is TerformS 
under the direction of an executive committee elected b Ahe eounS 
tTe cZcr' '"' '""'^"'^ vice-president, and five rnel^C^t 

Service on the councH is gratuitous except that traveling expenses 
and a fee of 20 lire ($3 86) per day is paid to member. res£g7uS 
of Rome, and a fee of 10 lire ($1.93) for each.session is given to the 
labor representatives living in Rome 

Branch OFFicEs.-The duties of branch offices may be intrusted 

mutual benefit societies, insurance companies, and similar institu- 
tions and in absence of such, special branch Offices mTbe estab. 

Sir ''"^" ''''?' '' '"^«' committees. Besid'^erfoSt 
the necessary financial operations these local branch offices 2 
endeavor to keep the population informed of the activity ofthe 
msurance institution and the advantages offered by it In adi 
mtnt if ^r/'^"/''° ;-t^i"« -g-lations concerning the invlt 
tills. *'' '"'^ '''' '""^ P^^P^^*^"'^ «^ ^--' and'cuinquenSii 

k frr/*?^-"?! procedure of old-age and invaUdity insurance 
IS regulated mainly by the new technical regulations "^"^'"i''^ 

Applications for insurance may be made either by the appUcant him- 
self or by another person either at the central office in R Jme or at^e 
branch offices or agencies of the institution or in post-Sc^ t^^ 
which they are forwarded to the main offices. The admS'raUon 
may dechne to insure an applicant, but he has a righrto apped 
to the admmistrative councU, whose decision is final ^'^ 

Kor each insured person an individual account is opened in th« 
books of the institution and a deposit book is made out and forwLtS 

Ih paS^ ''' '-' ^^-^-- '^^ '-^ -- ^e prlnLTS 

atfrT^"'*^ TI^^ °'*'*^ ** any agency of the institution, as enumer- 
ated above, but once a year the book must be forwarded bvth« 
insured through the agency, for balancing, for mSg t^^ entrit 
in the account and for adjusting the benefiis. 

of th^benlfit!^/^."""! '" 'r^^"^ •'°"°*"^ "^^y ^-^ themselves 
hv tv. M !^ , Jl' ^''*' *°** ''"'^"'^ "i^y be designated as agents 

appott^^- /""'»"" ''^*^' °' *^« insurance^institutLTay 
appomt agents m foreign countries. "^ 



1890 



REPORT OF THE COMMISSIONER OF LABOR. 



When an insured person ceases to conform to the qualifications for 
workmen's insurance required by the law, he must so inform the 
institution. If he fails to do so and information to that effect reaches 
the administration, it must notify him in writing that the appropriate 
measures will be applied to him. The insured may appeal to the 
council against the decision within one month, but the decision of 
the council is final. Wlien the question is settled against the insured 
the transfer of his account to the ''popular insurance'' roll is effected. 
When he again qualifies for the workmen's insurance rolls he must 
furnish the same evidence as for an original insurances When an 
annuity is granted the deposit book is exchanged for an annuity 
certificate. Annuities are payable in quarterly amounts, on March 
1, June 1, September 1, and December 1, on presentation of this 
certificate by any office or agency of the institution. Annuity pay- 
ments not demanded witliin a w^hole year are suspended and apphca- 
tion for their recovery must be made to the central office. Payments 
due but not collected may be recovered by the heirs within two years. 

PROBABLE AMOUNTS OF PENSIONS. 

The new method of computing the pension values of payments has 
gone into effect so very recently that it is impossible to give any accu- 
rate estimate as to the values of pensions which the insured may 
expect under normal conditions. But as the actual values of pensions 
purchased could not change very materially notwithstanding the 
radical change in the method of computations, estimates based upon 
the old laws of 1898 and 1901 will be indicative if not altogether 
accurate. The actual pensions can not, of course, be guaranteed in 
advance; they must depend upon the rate of interest, the amount 
of the institution's subsidies and the invalidity table. 

In the following tables the assumptions are: An annual rate of 
interest of 3.75 per cent, an annual additional benefit of 6 lire ($1.16) 
from the institution to each individual account, and the accepted 
Itahan mortahty table. The following table shows the expected 
value of the annual pension maturing at 60 or 65, when payments of 
contributions begin at 20, 25, 30, 35, and 40, and when the annual 
contributions amount to 6, 12 ,18, 24, and 36 lire ($1.16, $2.32, $3.47, 
$4.63, and $6.95). The values of pensions differ materially under 
the two plans of insurance, the mutual (alienated capital) plan and 
the reserved-capital plan. 

If old-age insurance is taken out at the age of 20 or 25, the pensions 
may reach substantial amounts, but for persons contracting for such 
insurance at more advanced ages, and especially if the minimum con- 
tribution of 6 hre ($1.16) per annum is paid, the pensions are very 
small. It must be remembered, however, that a substantial increase 



CHAPTER vn. workmen's INSURANCE IN ITALY. 1891 

of the value of the pensions is possible by delaying the time of the 
maturing of the pension from the age of 60 to the age of 65, or accord- 
ing to the new table of pension values (on p. 1893) to the age of 70. 

EXPECTED VALUE OF ANNUITIES, BY FORM OF INSURANCE, AGE AT TIME OF 

INSURING, AND AMOUNT OF CONTRIBUTION. HMJfiOF 

[Source: Luigi R ava, La Cassa Nazionale di Prevideiua per la Invalidia e per la Vecchiaia degli OperaL] 

Expected value of annuity for annual premium <rf— 



FcMin of insurance and age at time of insuring. 



ALIENATED CAPITAL. 



11.16 

(6 lire). 



Pension maturmg at age of 60, Insured at age of— 

20 years 

25 years 

30 years [ 

35 years 

Pension maturing at age of 65," insiired at age of—" 

20 years 

25 years " " 

30 years 

35 years !"!] - 

40 years 



EESEEVED CAPITAL. 



Pension maturing at age of 60, insured at age of— 

20 years 

25 years 

30 years ] 

35 years [".[".['". 

Pension maturing at age of 65, insured at age of—" 

20 years 



25 years. 
30 years. 
35 years. 
40 years. 



•29.72 
22.58 
16.60 
11.19 

53.27 
40.72 
30.69 
22.58 
16.21 



24.70 

19.11 

14.28 

9.84 

40.92 
3L85 
24.51 
18.34 
13.51 



t2.32 
(12 lire). 



•45.74 
34.55 
25.48 
17.56 

82.60 
62.92 
47.29 
34.55 
24.70 



35.51 
27.60 
20.84 
14.67 

57.90 
45.36 
34.93 
26.44 
19.49 



$3.47 
(18 lire). 



•61.76 
46.51 
34.35 
23.93 

111.94 
85.11 
63.88 
46.71 
33.39 



46.51 
36.09 
27.41 
19.69 

74.50 
*8.C7 
45.36 
34.55 
25.48 



•4.63 
(24 lire). 



•6.95 
(36lJze). 



•77.78 
58.48 
43.23 
30.30 

14L28 

107.31 

80.48 

58.67 

41.88 



57.32 
44.58 
33.97 
'24.51 

91.48 
72.18 
55.78 
42.65 
31.46 



•109.82 
82.41 

60.99 
43.04 

199.95 

151.70 

113.68 

82.80 

59.06 



79.13 
61.57 
47.09 
34.35 

125.06 
99.01 
76.62 
58.87 
43.43 



An estunate of the amounts of monthly contributions necessary to 
acquire a pension of 180 lire and 360 hre ($34.74 and $69 48) to 
mature either at 60 or 65 years of age, both for the alienated and 
reserved capital plans, is given in the following table. For a person 

^^Ao Tl^ ^! !^ ^^^ ^^ ^^ ^^^""^ ^^' ^^^^^^^^ ^ P^^«i«^ <>f 360 hre 
.($69.48) at the age of 65 years may be acquired by a monthly pav- 

ment o 1 90 lire (37 cents) per month on the reserved^apital plan 
and of 1.15 hre (22 cents) per month on the mutual plan. Unfortu- 
nately, it is unpossible to ascertain, because of the absence of detailed 
reports of the old-age insurance institutions, what the average con- 
tnbuUon of the persons insured amounts to. 



rr 



1892 



KEPOBT OF THE COMMISSIONER OF LABOR, 



ESTIMATED AMOUNT OF MONTHLY CONTRIBUTION NECESSARY TO INBtTRE A 
PENSION OF 180 LIRE ($34.74) AND 360 LIRE (J69.48), BY FORM OF INSURANCE AND 
AGE AT TIME OF INSURING. 

(Source: Lulgi Rava, La Cassa Nazionale dl Prevldenza per la In validltil e per la Vecchlaia degll Operai. ] 



Age at time of 
insuring. 



20 years. 
25 years. 
30 years. 
35 years. 
40 years. 



Estimated amount of monthly contribution necessary to insure a pension of- 



$34.74 (180 lire). 



Mutual plan: Ma- 
turing at age of— 



30 years. 



eo.l25 
.193 
.290 
.454 



65 years. 



Reserved capital 
plan: Maturing 
at age of— 



60 years. 



$0,097 
.097 
.116 
.193 
.309 



$0,183 
.270 
.396 
.598 



65 years. 



$0,097 
.116 
.193 
.290 
.434 



$69.48 (360 lire). 



Mutual plan: Ma- 
turing at age of— 



60 years. 



$0,338 
.473 
.666 
.984 



65 years. 



$0,154 
.222 
.318 
.473 
.704 



Reserved capital 
plan: Maturing 
at age of— 



00 years. 



10.492 

.666 

.907 

1.293 



65 years. 



$0.2«1 
.3ft7 
.511 
.704 
.994 



ORDINARY PENSION INSURANCE. 

A tariff of rates for ordinary voluntar^^ old-age pension insurance, 
authorized by the law of July 28, 1901, and by the decree of Decem- 
ber 22, 1901, was published June 26, 1904. This form of insurance 
does not confer any specific gratuities upon the assured, but gives 
the advantage of insurance in an institution not conduct e< I for profit, 
which may manifest itself in lower rates. Both forms of insurance 
are permitted — the alienated-capital plan and the reserved-capital 
plan. In the former plan the premiums are forfeited at death, in the 
latter plan they are returned. A few rates for each plan are quoted 
in the following table, where the amount of pension maturing at a 
definite age and purchasable by a single payment of $100 is given. 
While the alienated plan naturally permits a higher pension than the 
reserved-capital plan, it is nevertheless evident that for longer periods 
the difference becomes very much less important. It is evident 
that, while attractive in form, these ordinary old-age pensions are of 
comparatively little importance to the wage-workers, with the 
standard of earnings prevailing in Italy. Thus it is true tliat by mak- 
ing a single deposit of $100 to the credit of his cliild at the age of 5, 
the workman could guarantee to that diild an annual pension of 
$168.90 beginning at the age of 65, but there are very few workers in 
Italy with an income large enough to make such provision for the 
old age of their cliildren. At the age of 25 a workman coultl begin 
to provide for his own old age; then each dollar paid in would guar- 
antee a pension of 46 cents beginning with the age of 60, the value of 
the pension purchasable with each payment decreasing with advanc- 
ing age. No statistics of this branch of activity of the institution 
were available. 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1893 

AMOUNT OF ANNUAL PENSION SECURED FOR A PAYMENT OF $100 ON THE ORDINARY 
PLAN, BY AGE AT TIME OF PURCHASE AND AGE AT MATURITY OF PENSION. 

ISource: Cassa Nazionale di Previdenra per la Invalidity e per la Veochiaia degll Operai Assicurarlonl 

Popular! di Rendite Vitalizie Condizioni General! e Tariife] Assicuranom 



Form of insurance 
and age at time of 
purchase. 



Amount of annual pension secured for $100 when maturing at age of— 



20 
years. 



ALIENATED CAPITAL, 



5 years 

10 years 

15 years 

20 years 

25 years 

30 years 

35 years 

40 years 

45 years 

50 years 

55 years 

60 years 

65 years 

69 years 

RESERVED CAPITAL. 



$8.57 
7.02 
5.80 



5 years 

10 years 

15 years 

20 years 

25 years 

30 years 

35 years 

40 years 

45 years 

60 years 

55 years 

60 years 

65 years 

69 years 



25 
years. 



$10. 91 
8.95 
7.39 
6.04 



30 
years. 



$14.02 

11.51 

9.60 

7.77 

6.31 



35 
years. 



76 
42 
33 



8.62 
6.91 
5.51 
4.36 



1L08 
8.89 
7.08 
5.61 
4.40 



$18.27 

14.99 

12.38 

10.12 

8.22 

6.68 



40 
years. 



$24 24 
19.88 
16.41 
13.42 
10.91 
8.86 
7.30 



45 
years. 



14.42 
11.58 
9.23 
7.30 
5.73 
4.46 



19.18 
15.36 
12.25 
9.69 
7.62 
5.93 
4.45 



$32.83 
26.94 
22.24 
18.18 
14.78 
12.01 
9.75 
7.89 



25. 
20. 
16. 
13. 
10. 

8. 

6. 

4. 



92 
81 
60 
13 
32 
02 
16 
65 



50 



55 



60 



years, i years, years. 



65 
years. 



$45.81 
37.60 
31.05 
25.08 
20.62 
16.76 
13.61 
11.02 
8.85 



$66. 
54 
45. 
36. 
29. 
24 
19. 
16. 
12. 
10. 



56 
63 
10 
87 
96 
35 
78 
01 
86 
23 



36.18 

29.05 

23.16 

18.33 

14 39 

11.20 

8.60 

6.49 

4 79 



$102.09 
83.79 
68.17 
56.54 
45.95 
37.36 
30.34 
24 55 
19.73 
15.69 
12.23 



52. 
42. 
33. 
26. 
20. 
16. 
12. 

9. 

6. 

4 



57 
20 
65 
63 
91 
27 
49 
43 
96 
99 



80. 
64 
51. 
40. 
32- 
24 
19. 
14 

la 

7. 
5. 



61 
72 
61 
85 
07 
94 
16 
46 
67 
65 
26 



$168. 
138. 
114 

93. 

76. 

61. 

50. 

40. 

32. 

25. 

20. 

15. 



90 
63 
46 
55 



19 
63 
64 
95 
24 
32 



70 
yean. 



133. 
107. 

85. 

67. 

53. 

41. 

31. 

23. 

17. 

12. 

8. 

5. 



39 

08 

39 

58 

07 

28 

70 

92 

66 . 

65 

71 

68 ' 



$311. 70 

255.84 

211.22 

172 65 

140.30 

114 06 

92.63 

74 97 

6a 23 

47.89 

37.34 

28.28 

20.49 

15.04 



246.15 

197. 61 

167.59 

124 70 

97.93 

76.17 

58.49 

44 16 

32.59 

23.35 

1&07 

10.47 

&33 

3.93 



A comparison of this tariff with the precedmg estimates makes 
possible an approxunate determination of the value of the subsidies 
In the foUowmg table an effort is made to compute this value by 
comparmg the value of the pension on the subsidized plan and on 
the ordmary plan, under the supposition of an annual premium of 
12 hre ($2.32). 



J 



♦ l! 



) f 



1894 



REPORT OF THE COMMISSIONER OF LABOR. 



COMPARISON OF EXPECTED VALUES OF ANNUITIES UNDER THE DIFFERENT 
FORMS OF INSURANCE, BY AGE AT TIME OF INSURING. 



Form of insurance and age at time of insuring. 



ALIENATED CAPITAL. 

Pension maturing at age of 60, iiwured at age of— 

20 years 

25 years 

30 years 

35 years 

Pension maturing at age of 65, insured at age of— 

20 years 

25 years 

30 years 

35 years 

40 years 

EESERVED CAPITAL. 

Pension maturing at age of 60, insured at Eige of— 

20 years 

25 years 

30 years 

35 years 

Pension maturing at age of 65, insured at age of— 

20 years 

25 years 

30 years 

35 years 

40 years 



Expected value of annuit v for 
annual premium of 92. '62 (12 
lire). 



Work- 
men's 
form. 



$45.74 
34.55 
25.48 
17.56 

82.60 
62. 92 
47.29 
34.55 
24.70 



35.51 
27.60 
20.84 
14.67 

57.90 
45.36 
34.93 
26.44 
19.49 



Ordinary 
form. 



$28.16 
22.11 
17.20 
13.20 

44.33 
34.32 
26.19 
19.58 
14.22 



16.18 

11 86 

8 49 

5.87 

27.36 
20 22 
14, (H 
10.31 
6.96 



Exc<»ss of 
work- 
men's 

annuity. 



$17.58 

12.44 

8.28 

4.36 

38.27 
28.60 
21.10 
14.97 
9.48 



19.33 

15.74 

12.35 

8.80 

30.54 
25.14 
19.29 
15.13 
12.53 



The comparison shows that a very considerable proj)ortion of the 
workmen's pension consists of the subsidies. This excess of the 
workmen's pension over an ordinary pension purchased at the same 
cost is higher for the reserved-capital plan than for the alienated- 
capital plan. The reason for this is obvious, for in the workmc^n's 
pension on a reserved plan only his own payments are reserved, 
while the subsidies are given on an alienated plan. The difference 
between the values of pensions on the reserved and the alienated 
plans is not so great for the workmen's pension as for the ordinary 
pension, for the workmen's reserved-plan pension is only partly on a 
reserved plan. On an alienated plan, therefore, from one-third to 
almost one-half of the pension is due to the subsidies, and on the 
reserved plan from one half to two-thirds. 

STATISTICS. 

The statistical information concerning the old-age and invalidity 
insurance institution is very meager. In the following table is given 
the number of persons taking out insurance from the beginning of the 
activity of tlie institution in October, lcS99, until the close of 1908. 

The number of persons taking out insurance shows considerable 
fluctuations, but the largest numbers are found in the years 1902 and 
1906, due to the influence of the amendments to the organic law. 



CHAPTER VII.— workmen's INSURANCE IN ITALY. 1895 

The total number of accounts opened during the years shown in 
the table equals nearly 300,000; according to the latest information 
available the total number of accounts opened up to November 30 
1910 reached 352,376; but, unfortunately, further details as to the 
distribution of these by sex, age, occupation, etc., are lackin- 

For the years 1904 to 1908 the data are shown by the place where 
insurance was taken out-i. e., either the main and branch offices of 
the institution or the post-offices; and the table shows the very impor- 
tant function of the post-office as a stimulus to popular thrift In 
some years more than one-half of the insurance was taken out at 
post-offices. 

A comparison of the two plans of insurance indicates that they are 
about equally popular, both meeting existing demands. During the 
hve years for which data are available, 1904 to 1908, the total num- 

fifon.f ^ r'f '^T"^ r *''^ "'"'^""l P^*"! (alienated capital) was 
84,903 and that of policies on the reserved capital plan 84 849— 
almost exactly equal. ' 

NUMBER OF PERSONS INSURED EACH YEAR IN THE NATIONAl mn.i,r-v .x-,> 

SJu^^S IT.TZ' ''•'^"™™'^'' - — - --™-- Axrrll/^o? 

(Source: Bolletunodelrumdo del L"™™. ^to J^««.^and Die Arbeiter-Ve^icheruog ta Ausiande. 



Year. 


Number insured at— 


Number insured 
under- 


Total 


Post-offices. 


Main office 

and 
branches. 


Mutual 
plan. 


Reserved- 
capital 
p an. 


insured 

during 

year. 


1899(a).... 


C) 

(*) 

C) 

13,687 

12,378 

25,590 

14, 162 

11,302 


(b) 

(*) 

C) 

(*) 

17. 739 

11,302 

25.201 

20,998 

17,393 


C) 
C) 
(«>) 
C) 

15,840 
10,889 
27.875 
16, 630 
13, 069 


(M 

(«•) 

C) 

C) 

15.586 

12. 791 

22,916 

18.530 

15,026 




1900 


776 


1901 


10.279 


1902 


20. 324 


1903 


54.470 


1904 


28.779 


1905 


31.426 


1906 


23,680 


1907 ■ 


50.791 


1908 


35. 160 




28.695 



b Not separately reported. 



a For last 3 months only. 

Very interesting data concerning the size of the contributions of 

ri^oT^f T ^'? P"b"«li«d by the old-age insurance institution 

Qn\ 'i '^^ unfortunately they refer only to the years 1900 to 

IMS, and no later comparable data were published ; they nevertheless 

throw some light upon the activity of the fund. 

67725°— VOL 2— 11 26 



1896 



REPORT OF THE COMMISSIONER OF LABOa. 



ANNUAL CONTRIBUTIONS OF PERSONS INSURED IN THE NATIONAL OLD-AGE AND 
INVALIDITY INSURANCE INSTITUTION, 1900 TO IWA. 

[Source: BoUettino di Notizi* sul Credtto e suUa Previdenza, l\m.] 



Amount of contributions during year. 



Total membership: 

No contribution 

Less than 6 lire ($1.16) 

6 lire (SI. 16) 

6.01 to 10 lire (SI. 16 to $1.93) 

10.01 to 25 lire ($1.93 to $4.83) 

25.01 to 50 lire ($4.83 to $9.65) 

50.01 to JOO lire <S».65 to $19.30) 

100 lire ($19.30) and over 

Total 

Membership on mutual plan: 

No contribution 

Less than 6 lire ($1.16) 

6 lire (f 1.16) 

6.01 to 10 lire ($1. 16 to $l.93> 

10.01 to 25 lire ($1.93 to $4.83) 

25.01 to 50 lire (U.&i to $9.65 ) 

50.01 to 100 lire ($9.65 to $19.30) 

100 lire ($19.30) and over 

Total 

Membership on reserved-capital plan: 

No contribution 

Less than 6 lire ($1.16) 

6 lire ($1. 16) 

6.01 to 10 lire ($1.16 to 81.93) 

10.01 to 25 lire ($1.93 to $4.83) 

25.01 to 50 lire (4.83 to $9.65) 

SO.Ol to 100 lire ($9.65 to $19.30) 

100 lire ($19.30) and over 

Total 



1900. 



Num- 
ber con- 
tribu- 
ting. 



238 

2.807 

4,890 

615 

1.441 

881 

364 

227 



11.463 



155 

1,679 

1,586 

351 

861 

598 

119 

47 



5,396 



83 
1,128 
3.304 
264 
580 
283 
245 
180 



Per 
cent 

of 
tot^ 



2.08 

24.49 

42.66 

6.36 

12.57 

7.69 

3.17 

L98 



100.00 



2.87 
31.12 
29.39 

6.50 
15. 96 
11.08 

2.21 

■ .87 



1901. 



Num' 

ber coo^ 

tribu- 

ling. 



2.734 
4.612 
n. 185 
2, 450 
5. 397 
.i, 190 
2,713 
2,2iG 



42. 497 



1.286 

2. 731 
7.. 380 
1.250 
■2. 879 
1.782 
I 280 
1 220 



100.00 



1.37 
18.59 
54.46 
4.35 
9.56 
4.66 
4.04 
2.«7 



6.067 100.00 



1!>, 808 



1.44S 

1,881 
n.805 
1,200 
2,518 
! 108 
1,433 
996 



22. 689 



Per 

cent 

of 

total. 



6.13 

10.85 

4S. 14 

5.77 

12.70 

7.51 

6.38 

5.22 



100.00 



190Li. 



Num- 
ber oon- 
tribu- 
ting. 



liO.929 

24,907 

27.640 

3, 2.55 

14.456 

4.261 

3.545 

2,581 



Per 

cent 

of 

U>tal. 



11. 94 
27.20 



30 
8 

1) 
1 



18 



79 
<>5 
4.87 

2.82 



91,574 100.00 



6.49 

13. 79 

37-26 

6.31 

14. 53 

9.00 

6. 46 

6.16 



100.00 



6.38 
8.29 

52. 03 
5.29 

11.10 
6.20 
6.32 
4.39 



100.00 



4,963 
14.480 
12,325 
1.391 
6,^> 
2.280 
l.O.'iS 
1.724 



4.5.104 



11.00 

.32. 10 

27.33 

3. OS 

15.27 

5.06 

2. .34 

8.82 



100.00 



5.966 

10, 427 

15,315 

1,864 

7,570 

1,981 

2,490 

857 



46.470 



12.84 

22. 44 
32. 9C> 
4.01 
16.29 
4.26 
5.36 
1.84 



100.00 



1903. 



Num- 
ber ooa- 
tribu- 
ting. 



35,959 
9,<»4 

39,650 
4,540 

18,094 
7,150 
6.097 
5,121 



126,295 



19.547 
5,133 

17. 199 
2.017 
9,-192 
4,09<i 
2.982 
3,. 551 



P« 
cent 

of 
totaL 



28.47 
7.67 

31.^ 
3.59 

14.33 
5.66 
4.83 
4.05 

100.00 



^3m do 

8.03 
26.91 
3.16 
14.69 
6.41 
4.66 
5.56 



a3.9l7 100.00 



16.412 
4.551 

22.451 
2,523 
8.702 
3.054 
3.115 
1.570 



26.31 
7.30 

35.99 
4.04 

13.95 

4.m 

4.99 
2.52 



62,378 1100.00 



The table shows a very rapid increase of the number of persons 
who made no contributions during the year. In 1900 thev amounted 
to only 2.1 per cent, in 1901 to 6.4 per cent, in 1902 to 11.9 per cent, 
and in 1903 to 28.5 per cent. Thus in 1 903 nearly three-tenths of the 
members were not paying their contributions. The total number of 
persons insured as stated in the preceding table must be considered in 
the light of these data. 

It is true that a number of persons failing to contribute anything 
during one year may do so during the next year. Of the persons mak- 
ing some contribution during the yeai* 1903 nearly half contributed 
6 lire (SI. 16), which entitles them to the subsidy. The number of 
persons contributing that amount in 1900 was 42.7 per cent of the 
total; and in 1903, 31.4 per cent of the total number, or about 44 
per cent of those who contributed anything during that year. 

The very large number of persons contributing less than 6 lire 
($1.16) in 1902, and nothing in 1903, is explained in the official report 
as a result of the fact that in consequence of a very active propaganda 
a large number of workmen insured themselves in the institution, who 
soon found it difficult to keep up the contributions and gradually 
dropped out. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1897 

Of the finances of the old-age and invalidity insurance institution un- 
fortunately very little information is available. The assets and liabili- 
ties of the institution for 1899 to 1909 are shown in the tables following. 

The deposits and other revenues of the institution are distribut^ 
among numerous funds, as is prescribed bv the laws and regulations 
governing it. These funds are shown in detail in the next t'able. 

(1 ) The endowment fund, representing a source of financial strentrth 
and future revenues for the institution, grows very rapidlv, both\v 
special revenues and by assignments from the ordinary revenues as 
prescribed in the law. But with the increase of deposits the proper- 
tion of the endowment funds to the total is gradually declining. 

(2) The invalidity fund, representing the amounts to be used in 
subsequent grants of invalidity pensions and 

(3) The special reserve fund for protection of tlie two funds above 
mentioned have been described above. 

(4) The mutual benefit societies' fund represents amounts specially 
designated for bonuses to be added to pensions of persons insured 
under the collective insurance contract. 

(5) Similarly, the special fund for ^'brief period" insurance is 
intended to provide means for payment of bonuses to pensions of 
members of mutual benefit societies who have been insured less than 
10 3^ears when reaching the pension age. 

(6) Special grants in favor of certain groups of depositors, when so 
designated, must be kept in a special account according to the retni- 
lations. 

(7) The pension fund represents the actuarial vahie of current 
pensions which have matured or have been purchased outright (as in 
the case of compensation for permanent injuries). 

(8) The indemnity deposit fund represents the deposits of com- 
pensation made in case of injuries likely to remain permanent- these 
deposits are held in trust by tlie National Old-Age and Invahdity 
Insurance Institution for two years, according to the accident insur- 
ance law, until the final adjudication of the claim. 

(9) The depositors' fund is the most important of all. It contains 
the actual pa\Tnents made either by insured persons or for them and 
the benefits annually contributed by the institution out of its revenues. 

(10) Popular old-age insurance which is done by tlie institution 
(since 1905 on an independent rate and without participation in any 
ot the benefits granted to workmen) is kept in a separate account 
NMule tlie operations under this plan are as yet very small, they show 
a perceptible growth and indicate the achantagcs of the low rat-s 
oJered by tlic institution. 

(11) The provident fund for the employees of the central office 
represents the results of accumulations of small gratuities giyen 
annually by tlie administration in favor of these employees. 

(12) The last fund represents the difference between the general or 
ordinary revenues of the institution and its expenses. Tlie ordinarv 
revenues do not include those revenues which in virtue of the law 



-^r L 



1898 



EEPORT OF THE COMMISSIONER OF LABOB. 



! ! 



I! 



must be turned into the endowment fund, nor the deposits made by 
or for the insured directly. 

All expenditures, exclusive of pension payments, are met out of 
these revenues, and the surplus is redistributed among the other 
funds. In this table the amount in this fund on December 31 of each 
year is shown, the distributing usually taking places at the end of 
March. Unfortunately, data concerning the annual receipts and 
expenditures and the distribution of this surplus are not available 
later than 1902. As appears from the report for that year, the 
2,698,997 hre ($520,906.42) available for distribution at the end of 
that year were assigned as follows : 304,485 lire ($58,765.61 ) , or 1 1 .3 per 
cent, to the endowment fund; 392,285 lire ($75,711), or 14.5 per cent, 
to the invalidity fund ; 98,071 hre ($18,927.70), or 3.6 per cent, to the 
special reserve fund; 458,000 hre ($88,304), or 17 per cent, to the fund 
of brief period insurance; 55,800 hre ($10,769.40), or 2.1 per cent, to the 
special mutual benefit societies' fund; 900,000 lire ($173,700), or 33.3 
per cent, for distribution of the regular subsidies of 10 lire ($1 .93), among 
the individual accounts; and the remainder, 490,356 hre ($94,638.71), 
or 18.2 per cent, was carried over into the next year's accounts. 

AMOUNTS IN THE VARIOUS FUNDS OF THE OLD-AGE AND INVALIDITY INSURANCE 

INSTITUTION, 1899 TO 1908. 

[Source: Bollettino dell' Ufficio del Lavoro Vol. XIII, May, 1910.1 



Year. 



1899 

1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 



Endow- 
ment fund. 



$2,219,107 
2,239,868 
2,436,805 
2, 739, 734 
2,913,685 
3,088,831 
3,282,273 
3, 473, 552 
3,927,952 
4,817,088 



Invalidity 
fund. 



$21,836 

21,836 

70,909 

113,668 

196,878 

360,779 

462,261 

636, 552 

916,850 

1,162,063 



Si)ecial 
reserve. 



$5,459 

5,459 

17,727 

28, 412 

49,214 

74,647 

99,758 

136, 441 

200,411 

261,535 



Fund 
of col- 
lective 
insur- 
ance by 
mutual 
benefit 
societies. 



$20,111 

32,103 

40,128 

81 . 752 

145.014 

400, 746 

000,697 



Special 
fund 
for in- 
surance 
for 
short 
periods. 



$94,392 
94,392 
120,050 
201,106 
300,904 
217,977 
261,697 
409,772 
516, 444 
683,337 



Si)ecial 

funds 

creatJ'd 

by 
contri- 
butions 
in favor 

of de- 
positors. 



?9,650 
13,(>()7 
14,221 
15,247 
15,474 
15,744 
15,(i73 
16, 275 
16,254 
21,479 



Fund of 
pensions 
granted. 



$2,860 

16,341 

48,978 

59,343 

69, 19() 

104,143 

186, 173 

208, 105 



Deposits 

under 
the acci- 
dent in- 
surance 

law 
made in 
case of 
perma- 
nent dis- 
abiUty. 



157,573 
212, 199 
259,837 
235,904 



Year. 


Fund of 

the 
insured. 


Amount 
to be redis- 
tributed 
among 
individual 
depositors' 
accounts. 


Popular 

old-age 

pension 

insurance. 


Provident 
fund 
for the 
employees 
of the 
central 
ollice of 
the in- 
stitution. 


Miscella- 
neous. 


Funds to 
be dis- 
tributed, 
December 
21. 


Total. 


1899 


$748 

31,744 

256, 491 

579,015 

1,151,385 

1,913,535 

2,662,872 

3,478,514 

4,002,543 

5,025,358 


$386 
386 






$528 

200 

465 

456 

2,312 

14,095 

53,741 

33,858 

56,259 

122,861 


$27,296 

359,226 

462,487 

520,906 

698, 139 

677,420 

1,030,472 

1,161,414 

1,238,582 

1,480,347 


$2, 379, 462 


1900 




$936 

1,941 

3,176 

4,773 

6,383 

8,201 

10,919 

13,888 

16,289 


2, 767, 654 


1901 




3,;i83,516 


1902 


16, 405 

34,740 

78, 125 

82,025 

136,254 

778,003 

897, 450 




4, 254, 577 


1903 




5, 448, 645 


1904 


"""$27 ,"706' 
52,047 
88,000 
159, 146 


6, r»79, 193 


1905 


8, ;?95. 200 


190(i 


10,006; 954 


1907 

1908 


12,«i02,002 
15,751,559 







CHAPTER VII. workmen's INSURANCE IN ITALY. 1899 

As is required by the law and regulations, the largest part of the 
assets IS invested in interest-bearing securities held by the Bank of 
Deposits and Loans. In 1908 nearly 80 per cent of the total assets 
were so invested. The amounts invested as loans to Provinces and 
communes since 1903, in virtue of the act of 1902, are insignificant- 
though the revised act permitted investment in real estate, this' 
form of investment has not shown any increase. 

ASSETS OF THE NATIONAL OLD-AGE INSURANCE INSTITUTION. 
[Source: Bollettino dell' Ufficio del Lavoro, Vol. XIII, May, 1910.J 



Year. 



1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 

1908 



Securities 
held by 

the Bank 
of Deposits 
and Loans. 



Interest 

due on 

securities 

held. 



$2,345,235 
2,714,542 
3,152,737 
3,759,876 
4.530,435 
4,763,537 
6,179,801 
7,793,755 
10,575.995 
12,444.446 



$26,621 

33,746 

42,044 

68,116 

85,632 

88,768 

116.265 

156,029 

178.456 

207,956 



Loans to 
Prov- 
inces, 
com- 
munities, 
etc. 



$403, 005 
631,455 
746.633 
660,694 
537.665 
463,094 



Urban 

real 
estate. 



$774,729 
901,587 
901.645 
901,992 
903.150 



Account 
with the 
Bank of 
Deposits 
and Loans. 



Cash on 

hand in 

central 

office, 

branches, 

and post- , 

office, i 



Miscel- 
laneous 

bills 
receiv- 
able. 



$6,447 
6,975 

47,756 
329,867 
240.429 
186,768 
128.941 
331,862 
398, 407 
1,432,908 



$966 

12,185 

110,263 

96,716 

169,791 

124, 618 

216, 790 

157,023 

959 

271,412 



$193 

206 

30,715 

2 

18,753 

9,318 

5,183 

5,946 

8,538 

28,593 



TotaL 



r2. 379, 462 

2.767.654 

3,383.516 

4,254,577 

5,448,645 

6, 579. 193 

8,295,200 

10,00G,9,>I 

12. 602, 002 

15.051,559 



COMPULSOEY OLD-AGE INSIIRANCE FOR CERTAIN STATE EMPLOYEES. 

The Itahan Government has at various times granted old-a<^e 
and superannuation pensions to various groups of its emplove^s 
It is impossible here to enter into a discussion of these civil-service 
pension laws. But the general tendency to incorporate these pen^ 
sion schemes into the National Old-Age and Invahdity Insurance 
Institution deserves to be emphasized, at lea^t as far as the indus- 
trial employees of the Government are concerned. 

Perliaps the best example of this tendency is found in connection 
witli the employees of the government tobacco monopoly. 

TOBACCO MONOPOLY. 

On November 23, 1886, a bill for the establishment of a pension 
fund for the employees in the tobacco industry was introduced but 
It did not come up for discussion. A similar fate befell the later 
effort of November 19, 1887. While both these efforts failed, the 
admrnistration was forced to begin the payment of regular benefits 
to disabled and superannuated employees. In the beginning such 
intormal benefits were paid only to employees working for time 
wages, but smce 1892 these benefits were extended to workers for 
piece wages. From 1892 to 1899 the minimum annual pension for a 

7^'^^ZT ^""^ ^^^ ^''^ ^^^^'^^^' ^^ 1899 it was increased to 180 lire 
^^^4.74), m 1901 to 216 lire ($41.69), and in 1902 to 240 hre ($46 3'>) 



J 



1900 



BEPORT OF THE COMMISSIONEE OF LABOE. 



The maximum in 1897 was placed ut 240 lire ($10.32), in 1899 
increased to 360 lire ($69.48), and in 1902 it was abolished. According 
to the rules adopted in 1892, inability to work did not give the right 
to a pension unless the appUcant had reached the age of 60; in 1894 
the conditions were modified so that 35 years of service were suffi- 
cient, without regard to the age at the time of applying for a pension; 
and in 1899 the limit was reduced to 25 years of service. 

The following table gives an indication of the rapid development 
of these benefits during the period 1894 to 1903, the average number of 
employees being about 15,000: 

NUMBER OF BENEFICIARIES AND AMOUNT OF BENEFITS PAID TO EMPLOYEES OF 
THE TOBACCO MONOPOLY, 1894 TO 1903, BY YEARS. 

[Source: Ballettlao dl Natizi3 sal Credito e sulla Praviisnza, ISH.] 



Fiscal year. 



1.S94-5... 
1895-G... 
1890-7... 
1897-8... 
1S9S-9... 
1899-1900 
1900-1... 
1901-2... 
1902-3... 



Number 

of )>enefi- 

ciaries at 

the end 

of the 

year. 



221 

348 

309 

531 

685 

1,238 

1,754 

2,094 

2,445 



Amount 

of benefit. H 

paid 

durinj? 

the year. 



If), 807. 94 

11,872.03 

13,832.44 

21,512 77 

28,589 5J 

62,718 99 

105,594 29 

138,247 71 

158,436 14 



Average amount of 
benefits at the 
end cf th«« year 
to- 



Females. 



Mules. 



('•) 
(") 
(") 
(■') 

f02.09 
tH>.19 



bJ39.20 
ft 40. 51 
ft 41. 74 
ft50.6t) 
*60.51 
128.48 
129.63 



a Not separately reported. 



ft Average for both soxes. 



On September 29, 1899, immediately before the l^eginning of the 
operations of the old-age insurance institution, Minister Carmine 
ruled that no pei-son could be accepted as a permanent employee 
of the tobacco industry who would not be insured in the national 
old-age insurance institution. The contributions to be deducted 
from their earnings and paid by the administration of the indus- 
try were 1 lira (19 cents) per montli from the wages of females 
and 2 lire (39 cents) per month from the wages of the males. To 
this contribution the administration of tlie industry added an equal 
amount. Thus the system of gratuitous old-age pensions was abol- 
ished in 1899 except for persons already employed. Considerable 
diiference in the treatment of the old and new employees arose. 
Those employed on or before September 30, 1899, were entitled to 
a pension after 25 yeai-s of service. This pension was deternuned 
by the average annual salary for the last five years of service and 
amounted to yV of the average salary when the service was less than 
30 years, -fo when tlie length of service was 30 but less than 35 years, 
tV if 35 years but less than 45 years, ^ if 45 years but less than 50 
years, and j\ if 50 years or over. In all cases, however, the pension 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1901 

was due unless disability was established. The minimum pension 
was 240 lire ($46.32) for women and 480 lire ($92.64) for men. If 
such disability arose before the completion of 25 years of service, 
but after 10 years, the employee was entitled to ^jj of the averacre 
annual salary for the preceding five years, but such pension was to 
run only 2 years if the employee had served less than 12 years; 3 
years if he had been in service 15 years but less than 20 years, and 
for 4 je&rs if he had been in service 20 years but less than 25 years. 
The position of persons entering service after September 30, 1899, 
was entirely different, as they were subject to the general rule^ of 
the old-age insurance institution. But a computation showed that 
the pensions acquired under the latter conditions at the age of 60 for 
men and 55 for women would not be inferior to those granted under 
the old conditions. 

To make the provisions for the two classes of employees uniform, 
and to sanction the system by legislative action, a bill was introduced 
on March 17, 1904, which with a few modifications became a law on 
June 16, 1904. 

The law regulates the pensions for such employees as were m the 
regular service before September 30, 1899, subsequently referred to 
as ''old employees," and for those who entered the service since 
then and referred to in the following accounts as new employees 
The conditions are still very much different for these two classes of 
employees, but an effort was made in the law to equalize them as 
far as possible under the radical difference that only the new employees 
confribute to their old-age and invahdity insurance by compulsory 
insurance m the national institution. 

All workmen permanently employed in the six institutions of the 
tobacco-manufacturing monopoly, whether day workers, piece- 
workers, master mechanics, artisans, supervisors, or clerks, are 
included. 

The law provided for both superannuation and invalidity benefits. 

The old employees are entitled to a pension from the adminis- 
tration, and the new employees must have their pensions liquidated 
by the old-age insurance institution under one of the followincr three 
conditions : "" 

(1) When they reach the age of 60 (55 years for female employees); 

(2) men they are disabled for further employment after 25'j:ears 
of ser\dce; or 

(3) When they are disabled through injury or disease contracted 
because of their employment, provided they renounce their ricrht to 
compensation under the accident-insurance law. 

Lump-sum invalidity benefits are paid if the old employee has 
become disabled (not through the causes mentioned in the preceding 
paragraph) before he has acquired the right to a pension but after 



1902 



REPORT OF THE COMMISSIONER OF LABOR. 



10 years of service. Under identical conditions the new employees 
may demand the liquidation of their accounts in the old-age Lnsurance 
institution either in the form of pensions or lump-sum payments. 

When an old employee is forced to ^ive up the service on account 
of disability (invalidity), a right to the regular superannuation or 
invalidity pension is acquired; but after 10 years of service he receives 
a lump-sum benefit computed on the basis of the average daily wages 
for the precediQg five years, which is multiplied by 300 when the 
length of the service is less than 15 years, by 450 when it is 15 years 
but less than 20 years, and by 600 when it is 20 years but less than 
25 years. 

In case of new employees the national insurance institution must 
liquidate the pension either as a pension or as a lump sum, at the 
option of the insured. If the amount is below that named above 
the administration of the tobacco monopoly adds the necessary dif- 
ference to bring it up to that. 

The superannuation or invalidity pension of the old employee who 
has been in service 25 years is equal to the average daily wages for 
the preceding 10 years (excluding the two years of lowest wages) 
multiplied by 150. This gives approximately half liis annual salary. 
For each year over 25 years up to and including tlie 45th year of 
service 3 units are added to the multiplier, so that by the end of 45 
years the multiplier would be equal to 210 and the pension to -^ 
of the annual wages. For each year of service over 45 six units are 
added, so that the full pension, equal to annual wages, would be 
reached after 60 years of service. In no case shall the pension be less 
than 300 lire ($57.90) for female employees and 480 lire ($92.64) for 
male employees. 

The new employees receive their pensions from the National 
Old-Age and Invalidity Insurance Institution, com [)U ted according 
to the general rules. Their insurance may be either on the mutual 
(alienated-capital) plan or the reserved-capital plan (see p. 1878), as 
explained later. If the pension computed by the national institu- 
tion falls below the minima mentioned in the preceding paragraph, 
and the insurance has been taken on the mutual plan, then it is raised 
to the minimum, and the administration of the tobacco industry 
pays to the national old-age institution the difference necessary to 
bring the computed pension up to the minimum. Wlien the insur- 
ance has been taken on the reserved-capital plan, then the payment 
is such as would be necessary to bring the pension up to the minimum, 
if the insurance had been taken out on the mutual (alienated ca]>ital) 
plan. That is to say, the minimum quoted is guaranteed to the 
employee only as a pension or annuity. But if the employee prefers 
to reduce the amount of his annuity by insuring on a reserved-capital 
plan, that circumstance shall not entitle him to any extra benefit. 



CHAPTER VII.— WORKMEN 's INSURANCE IN IT.\LY. 1903 

In computing the length of service, all periods of service are added 
together, mcludmg the time of absence on account of sickness or 
military service. Credit is given for the tune spent in service in the 
private tobacco works in Sicily. 

The entu-e cost of the pensions of the old employees is met by the 
Government as a part of its appropriation for the tobacco works 
Ihe new employees are required to pay for their insurance, the fol- 
lowing amounts being deducted from then- wages: One lira (19 cents) 
per month for the female employees, who are in the vast majoritv 
and 2 In-e (39 cents) per month from the wa^es of the male employed' 
In addition a monthly contribution is granted by the administral 
tion, enough to make, when added to the members' contribution and 
the subsidy of the msurance institution, a total of 34 fire ($6 56) for 
the females and 58 Hre ($11.19) for the males. In other words, the 
total annual subsidy of the State and of the insurance institution 
amounts to 22 lire ($4.25) for the female employees and 34 lire ($6 56) 
for the male employees. * 

Each employee must decide under which of the two plans (reserved 
or ahenated capital) he wishes to be insured. Within one year from 
the promu gation of the law the change from the alienated capital to 
reserved plan was permitted. ^ 

All superannuation and invahdity pensions paid according to pre- 
vious regulations are transformed into pensions accordmg to this 
law but on the basis of the wages and length of service established 
at the time when the benefits were granted 

On March 31, 1903, at the time when the'text of the law was bein^ 
prepared, there were 16,184 names of workers on the rolls of th^ 
tobacco monopoly; of these, 2,371 were pensioners and 13,813 active 
employees and only 1,388, or about 10 per cent of the Ictive em- 
ployees were males. Only 3,170, or less than one-fourth, of these 
entered the service smce September 30, 1899, and were subject to 
the new provisions for compulsory insurance, while 10,643 or over 
t n-ee-fourths, were entitled to gratuitous pensions. An es imate of 
he capitahzed value of the pensions ah-eady running or to be Tanted 

;i^e1;T82Xl'"'''^^^^ '''"' ^'^ ^^'"^^ '' ^^^^^^ ^S^ 

SALT WORKS. 

By the law of July 9, 1905, the provisions of the law granting pen- 
ions to he employees in the tobacco industry were exteSTracd 

emblr 30 ISQQ « those who were employed on or before Se,>- 

tSL T. ' , ^"^ "'°'^ "^^^ ^°'^'-«d t^« service since that 

time. These works employ about 2,000 persons. 



"BoUettino dell' Ufficio del Lavoro, Vol. IV, 1905. 



H I 



1904 



REPORT OF THE COMMIvSSIONER OF LrABOB. 
OFFICE OF ENGRAVING AND PRINTING. 



A special law granting pensions to the workers of both sexes 
employed in the government office for engraving and prmtmg secu- 
rities and valuable papers was approved on July 7, 1905. Tins law 
practically repeats the provisions of the law for the tobacco employees, 
except that the division into old and new employees dates not from 
September 30, 1899, but from the day of the pronmlgation of the 
present law (July 15, 1905). 

UNEMPLOYMENT INSURANCE. 

No governmental institution for the insurance of wage-workers 
acrainst unemployment exists in Italy, although the problem of unem- 
ployment insurance or rather unemjdoyment relief has been under 
serious discussion for some time. So far the practical movements of 
relief have been limited either to cooperative or to humanitarian relief. 
Only within the last year or two has the subject of government aid 
to unemployment insurance been seriously discussed. No general 
discussion of the complex problems of unemployment- is here intended, 
but the measures applied and proposed in Italy and the results of 
their appUcation will be briefly sketched. 

For a proper appreciation of the question of unemployment insur- 
ance, the few available statistical data concerning unemployment in 
Italy will be quoted. In view of the importance of trade unions 
in the development of unemployment insurance, the main data con- 
cerning trade unions in Italy will be brought together, and the most 
interesting experiment in the field of unemployment insurance will 
be described. 

UNEMPLOYMENT STATISTICS. 

Data concerning the amount of unemployment in Italy are rather 
scant. While chambers of labor since 1904 have been required to 
furnish the Bureau of Labor with data concerning the number of 
organized workers and also the number of unemployed, the data thus 
furnished are, as yet, very incomplete. 

Perhaps the best statistical study of the unemployed is that pub- 
Ushed by the Humanitarian Society in 1905 and referring to the 
status in Milan on July 1, 1903. Of an entire productive population 
of 165,305, only 27,306, or 16.5 per cent, made any report relative to 
unemployment. Of these, 6,388, or 23.4 per cent, of the number 
reporting were without employment on July 1, 1903. 

In the following table the number and per cent of these 6,388 unem- 
ployed persons are given by age and sex. 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 



1905 



AGE AND SEX OF 6,388 PERSONS UNEMPLOYED IN MILAN ON JULY 1. 1903. 
ISource: Contro la DisDccupazione. Pubblicazioni della Society Umanitaria. April. 1905.] 



Age. 



Under 13 years. 
13 to 16 years... 
17 to 20 years... 
21 to 25 years... 
26 to 30 years... 
31 to 40 years... 
41 to 50 years... 
51 to 60 years... 
Over CO years.. 
Not reported... 



Males. 



Nmnber. Per cent. 



Females. 



Total. 



Total. 



30 
402 
764 
C73 
430 
657 
603 
5»4 
364 
115 



0.6 

8.7 

16.5 

14.5 

9.3 

14.2 

13.0 

12.8 

7.9 

2.5 



Number, i Per cent. 



Nun.ber. Per cent. 



4,632 



100.0 



19 
218 
313 
295 
161 
243 
204 
152 
99 
52 



1.1 


49 


12.4 


620 


i 17.8 


1,077 


16.8 


9tl8 


9.2 


591 


13.8 


900 


11.6 


807 


8.7 


746 


5.6 


463 


3.0 


167 



0.8 

9.7 

16.9 

15.2 

9.2 



14. 
12. 
U. 

7. 

2. 



1,758 



100.0 



6,3S8 



100.0 



The length of the state of unemployment, as indicated in the 
answers of the unemployed in Milan, is shown in the next table 
Altogether 165,305 persons were asked to report in regard to unem- 
ployment. Of this number, 137,999 persons, or 83.5 per cent, did not 
respond at all; 18,720, or 11.3 per cent, reported days of unemploy- 
ment withm the preceding year; and 8,586, or 5.2 per cent, siated 
that they had never been unemployed . Of the 6,388 persons reported 
unemployed on July 1, 1903, 878, or nearly 14 per cent, were unem- 
ployed continuously from 1 to 4 years and over. 



DURATION OF 



UNEMPLOYMENT OF 6,3SS PERSONS 
JULY!, 1903, BY SEX. 



UNEMPLOYED IX MIL.\N ON 



'^°""^- *''""™ '» Disoccupazione. Pubblicaxioni della Socie.4 rmanilaria, April. 1905.J 



Duration of uneinployinent. 



Males. 



Niuiiber. 



8 days 

15 days 

1 month 

2 months '. 

3 months '. 

4 to 5 months.. 
6 to 7 months. . 
8 to 9 months . . 
10 to 11 months. 
1 year 



2 years. 



3 to 4 years. . 
Over 4 years . 
Not reported. 



Total. 



278 

384 

513 

473 

4(51 

429 

437 

180 

76 

380 

167 

66 

96 

C92 



Females. 



Total. 



Percent. 



6.0 

8.3 

11.1 

10.2 

10.0 

9.3 

9.4 

3.9 

1.6 

8.2 

3.6 

1.4 

2.1 

14.9 



Niuuber. 



107 

151 

253 

226 

198 

138 

119 

49 

27 

109 

35 

13 

12 

319 



Percent. Number. Percent 



6.1 

8.6 

14.4 

12.9 

11.3 

7.8 

6.8 

2.8 

1.5 

6.2 

2.0 

.7 

.7 

IS. 2 



385 
535 
766 
G99 
659 
567 
S51 
229 
103 
489 
202 
79 
108 
1.011 



4,632 



100.0 



1,750 



6.0 

8.4 

1-2.0 

lao 

10.3 

a? 

3.6 
1-6 
7.? 
3.2 
1.2 
1.7 
15-8 



100.0 



t). JSi 



100.0 



The above data, interesting in themselves, because tliev throw 

mnl" • T f.o'^POsition of the unemployed body, do not give very 

e o -t "/T ^ '° ''•' '"*" °^ unemployment. In a late^ 

shows the nt/T' »^tf"t'«« 7 interesting table is given which 

S hint °^ ""«'"P>°y'««'it fo-- '"^embers of labor organizations, 

conlrn .u^^° ''^ ^"''^'^^ ^^""'^ furnishing regular monthlv report^ 
concermng the extent of unemployment. " 



mmmmm 



SMi 



J 



1906 



REPORT OF THE COMMISSIONER OF LABOR. 



PER CENT OF MEMBERS OF MILAN LABOR ORGANIZATIONS UNEMPLOYED EACH 

YEAR, 1906 TO 1909. 

[Source: Societa Umanitaria, Milano, Disoocupazione Colloeamenti Sussidi in Mllano nel 1909.] 



Year. 


Average monthly 
number of— 


Per cent 
of mem- 
bers un- 
em- 
ployed. 


Members 
of unions. 


I'^nem- 

ployed 

members. 


1908.... 
1907.... 
1908.... 
1909.... 


5.392 
6,499 
7,459 
6.148 


152 
230 
257 
169 


2.82 
3.54 
3.45 
2.75 



TKADE-UNION STATISTICS. 

Historically, unemployment insurance, or, to use a broader and 
more exact term, unemployment rt'lief, has grown up primarily as 
a function of the labor associations. While a few of the efforts 
toward furnishing unemployment relief have been made independ- 
ently of labor organizations, the latest and most successful experi- 
ments, such as the Ghent system in Belgium and tlie system of 
the Humanitarian Society, are based upon the recognition of this 
natural correlation. A few statistical data concerning the growth 
and extent of labor organizations in Italy will tiierefore bo useful 
in indicating the available organization for unemployment relief. 

Most of the Italian labor organizations are affiliated with the 
federations of trade associations, the federations of farm laborers, 
or the chambers of labor. 

The chambers of labor may be compared to our American central 
labor unions, though in Italy they have a semiofficial standing. 
They are representative organizations, composed of delegates from 
labor organizations, and have been growing in strength very rapidly 
during the last few years. At the beginning of 1906 there were 
82 chambers of labor in Italy, composed of 2,732 organizations, 
having a membership of 298,446. Two years later the number of 
chambers had increased to 92, the number of organizations to 3,747, 
and the membership to 546,574. 

The total income of these chambers in 1907 was computed at 
432,241 lire ($83,422.51) and the expenditures at 402,266 lire 
($77,637.34). 

The federations of trade associations are not as strong numeri- 
cally as the chambers of labor and do not seem to show the same 
tendency to growth. In the beginning of 1907 there were 21 of 
these federations, composed of 2,045 organizations, with a member- 
ship of 204,271, while in the beginning of 1908 there were 22 fed- 
erations, with 2,550 organizations and 191,599 members. Within 
the year four new federations were organized and three dissolved. 



CHAPTER VII.— WOKKMEN 's INSURANCE IN ITALY. 1907 

lTi%^Ji'^ri/.T^''T!u^^''' ^'^"^ approximately determined at 583,642 
lire ($112,643) and their expenditures at 480,526 lire ($9'^ 74'^) 

The third inaportant group of labor organizations is found'in the 
field of agricultural labor. The organizations of farm laborers in 

A. .u u^ "" ^'"'''^^ ^^""^ ^^P^^^^ ^^^^^i^ ^he la^t few years 
At the begmnmg of 1906 there were 982 of these oi^anizations' 
with a membership of 221,913. Two years later the number of 
organizations had increased to 1,809 and the membership to 425 983 
At the begmning of 1908 there were 189,423 farm laborers having 
membership m chambers of labor and 108,191 afhUated with the 
JN ajiional Federation of Agricultural Laborers. 

With 546,574 members in the chambers of labor, 191,599 in the 
tederations of trade associations, and 425,983 in federations of farm 
aborers, there would seem to be 1,164,156 members of labor unions 
m Italy. This number, however, includes a great many dupUca- 
tions, as many of the members of the trade associations and of 
the farm laborers' unions also belong to the chambers of labor 

Combmed statistics for these unions, indicating the relation 
between the local, central, and the national organizations were 
pubhshed m January, 1908, and refer to the beginning of 1907 

They are reproduced in the following table and show a grand 'total 
of about 684,000 members of labor organizations in Italy 

NUMBER OF ORGANIZATIONS AND MEMBERS OF LABOR UNIONS AT THF BKnvXTV ^ 

OF 1907. BY CLASS OF LABOR AND AFFILIATION ' 
^[Sourw: Bolletti;io deU' Ufficio del Lavoro, January, 1908.] 



Class of labor and affiliation. 



Agricultural labor: 

Affiliated with chambers of labor 
Independent .V' 



Number 

of 
orpani 



Number 
of 



nations, i members. 



Total. 



Industrial labor: 

Affiliated only with chambers of labor 
Affiliated only with federations 
Affiliated with both chambers 
Independent 



of labor and federations . 



Total 

Railroad employees. 
Grand total... 



551 
752 



102, 973 
17(3, S40 



1,303 279,513 



-^J?)!ated only with chambers of labor 
Amiiated only with federations. 



1,438 

mi 

569 
282 



144. 100 
52.960 

122, 164 
43,309 



2,950 I 362.533 



60 



42,000 



4,313 j 684,046 



I^ndependeni'?; ^oth chambers oVlabor and federations Z J ::::::::::;::;: 



Total affiliated with chambers of labor 
A otal affiliated with federations 



1.989 

a 721 

569 

1.034 



2, .558 
1,290 



247,073 

a 94, m> 

122, IM 

219, S49 



369.237 
217,124 



a Including railroad employees. 

tl JfT *^-^*'' "f, ^'^''" *"* S'"*"''*'" ^^""Sth by separate industries in 
wons and members m each large industrial group, but also their 



1908 



REPORT OF THE COMMISSIONER OF LABOR. 






respective affiliations and the proportion between organized labor 
and the total number employed according to the census of 1901 for 
almost all groups. The per cent of employed persons holding mem- 
bership in labor unions was obtained by di\dding the number of mem- 
bers in each industry at the beginning of 1907 by the number of 
persons in each industry according to the census of 1901. No later 
census figures were available. 

NUMBER OF ORGANIZATIONS AND MEMBERS OF LABOR UNIONS AT BEGINNING OF 
1907, BY INDUSTRY AND AFFILIATION, AND PER CENT OF EMPLOYEES IN LABOR 
UNIONS. 

[Source: BoUettino dell' Ufflcio del Lavoro, January, 1908.] 



Industry. 



Labor organizations. 



Affiliated with— 



Chambers of 
labor only. 



Num- 
ber 

of or- 

gani- 
za- 

tions. 



Agriculture , 

Fishing 

Metal raining 

Marble and stone 
quarrying and 
Tv'orking 

Sulphur mining and 
extracting 

Metallurgy 

Precious metals, 
working 

Pottery 

Bricks, etc 

Glass 

Building trades 

Chemical industry. . 

Woodworking 

Basket making 

Straw goods 

Paper making 

Printing 

Spinning, weaving, 
and dyeing 

Leather 

Clothing, etc 

Hat making 

Shoemaking 

Barbers 

Cereals and pastes. . . 

Bread baking 

Sugar making 

Other food products. 

Work in ports 

Navigation 

Govermnent estab- 
lishments 

street railroads 

Various public em- 
ployments 

Nurses, etc 

Not specified 



551 
1 
3 



G 
100 

11 
7 

45 

31j 
130 

IS 

91 
5 

16 


34 

02 
21 
52 

5 
37 
22 
50 
29 

2 
52 
461 
13 



Num- 
ber of 
mem- 
bers. 



102,973 



60 
240 



Federations 
only. 



Num- 
ber 

of or- 

gani- 
ea- 

ttons. 



24 



4,326 

1,845 
12,733 

891 

796 
5,663 
2,079 
13,428 
2,109 
8,001 

227 
1,221 

396 
2,383 

7,799 
2,033 
4,030 

352 
1,254 
1,663 
5,009 
2,438 

295. 
8,496 
9, 283 . 

918 



44 



82 



20 
31 

18 



Num- 
ber of 
mem- 
bers 



50 



2,700 



9,895 



1,091 
2,911 
1,141 
22415,655 
5i 2,007 
27 972 



2 
24 

24 

5 

4 

11 

58 

6 

30 



16 



4,016 



Total. 



99 8,518 

15 904, 

347 30,694 



13 
1 



282 
2,330 

1,612 
136 
269 
109 

3,842 
197 
255 

1,261 



Both cham- 
bers of labor 
and federa- 
tiims. 



Num- 
ber 

of or- 

gani- 
za- 

tions 



Num- 
ber of 
meia< 
bers. 



30 



591 



6 

18 

15 

145 

7 
33 

1 



60 



3 

34 

45 
8 
9 

18 

35 
5 
5 

38 
1 



3,140 
1,850 



1,160 
35 



8 
10 



35 
1 



2,987 



24,&19 



535 
4,255 
1,708 
26,&48 
1,629 
2,479 
20 



681 
8,366 

10,102 
1,454 

933 
4,851 
5,281 

890 

340 
4,178 

148 



Independ- 
ent. 



Nnm- 

Ijer 

of nr- 

g&ni- 

za- 

tiODS. 



752 



Num- 
ber of 
mem- 
bers. 



Total. 



Num- 
ber 

of or- 

gani- 
za- 

tions. 



1 
3 



15 



2 
2 
9 
2 

43 
3 

16 
2 

10 
2 
3 

18 
2 
4 



176,540 
85 
665 



12,698 
3,725 



3,171 
500 



26 
1 
7 

11 
2 
5 
2 
2 



77 



1,989 247,0731 66152,960 509122,164, 1,034 



834 

6,226 
194 

80 

95 

1,082 

18 

4,235 

170 

694 

352 

1,782 

475 

60 

3,946 

140 

94 



1,021 
82 

2,286 
399 
283 
951 

1,050 
610 

200 



Num- 
ber of 
mem- 
bers. 



Total 
number 

em- 
ployed, 
acwrd- 

ing to 
census 
of 1901. 



1,303 279,513 5,693.080 



15, 200 



147 

14 
244 

13 
35 

103 
66 

542 
33 

167 

8 

26 

13 

95 

149 
36 
69 
34 

156 
34 
69 

108 

5 

58 

48 

30 

27 
24 

99 

63 

426 



145 

955 



10, 847 

8,071 
47,371 

971 
3,517 

13,911 
4.94<i 

60,002 
5,915 

12,146 

699 

3, 003 

l,H;i4 

13,139 

23,156 
3,763 
5,326 
5,312 

11, 398 
2,832 

7,sm 

8,27<J 

726 

9,607 

10, .m 

17,.Wi«i 

5, 775 
4, 016 

8,518 

5,236 

46, 42« 



219,849 4,253 642,IM«} 



51.269 
21, 737 



64,306 

41.402 
211,123 

12,208 
8,182 

53,385 

12,044 
358, M8 

33,583 
186, 181 

19^962 
100,0-22 

23, 270 

32,296 

503,013 
14,104 

324,116 
11,682 

183, 430 
29,142 
87,541 
45,050 
11,800 
44,063 
C) 
(6) 

14,208 

(«•) 
12,059 



Per 

cent 
of 
total 
em- 
ploy- 
ees 
In la- 
bor 
un- 
ions. 
(«) 



4.9 
t 

4.4 



16. g 

19.5 
22.4 

7.9 

30. « 

26.1 

41.0 

16.7 

17.0 

6.5 

3.0 

3.0 

7.9 

40.7 

4.7 

26.7 
1.6 

45.5 
6.2 
9.7 
9.0 

18.4 
6.1 

21. tt 



40.0 



43.4 



(«•) 



«f°iS^o^ percentages have been computed from the number of members of labor unions at the be-'inniM 
0fm4 and the number of persons employed according to the census of 1901 oe^iaain^ 

6 Not reported. ***«*. 



1 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1909 

The functions of these local labor organizations and theii- federa- 
tions in Italy are very numerous and varied. Perliaps the mi>st 
diversified is the activity of the chambers of labor, while the federa- 
tions are more specialized organizations for collective bargainmg. 
The chambers of labor may, and do to some extent, undertake any- 
thing that may further the interests of labor, such as employment 
bureaus, legislative agitation, educational work, publication of trade 
papers, arbitration courts between employers and employees, etc. 
Thus, m 1908, 39 chambers had employment offices, 65 had legal-aid 
bureaus, 30 employed physicians, 19 had schools, and 44 had libraries. 

UNEMPLOYMENT BELIEF BY LABOB UNIONS. 

In a report concerning unemployment insurance recently presented 
to the Chamber of Deputies the estimate is made that out of half a 
million of mdustrial workmen belongmg to organizations onlv about 
50,000 are protected by unemployment insurance. («) 

It is explained that the labor organizations m Italy mostly follow 
the policy of low membership dues, and are therefore often unable to 
undertake any form of insurance. The largest national labor organi- 
zation to carry on unemployment insurance is the Italian federation 
of hat makers, with 36 branches and 5,896 members, which has a 
federal unemployment and traveling fund. Unemployment benefits 
are granted under the following conditions: At least one year pre- 
vious membership; conclusive proof of the involuntary nature of the 
unemployment and absence of any other remunerative work; and 
duration of unemployment for at least one week. 

The benefit is given for not over 12 weeks, and is very small 
amounting to only 2 lire (38.6 cents) per week during the first three 
weeks, 3 lire (57.9 cents) per week during the followmg three weeks, 
4.50 lire (86.9 cents) for the next four weeks, and 6 lire ($1,158) per 
week for the last two weeks. These are the benefits for the first 
(higher) group of members; for the second (lower) group they are 
only 1 lira (19.3 cents), 1.5 Ih-e (29 cents), 3 lire (57.9 cents), and 4.5 
lire (86.9 cents) per week. The means to pay these benefits are 
obtamed by contributions of members, which contributions are com- 
pulsory. The membership dues are 10 centesimi (1.93 cents) and 5 
centesuni (0.97 cents) per week for the two groups of members, and 
out of these dues 4 centesimi (0.77 cents) and 2 centesimi (0.39 cents), 
respectively, are deducted for unemployment msurance. In addi- 
tion to these unemployment benefits the federation pavs travelincr 
expenses. Durmg the year 1908 the federation distributed 2,980 lire 
($576.30) for unemployment benefits and 1,914 lu-e ($369.40) in 
traveli ng expenses, makin g a total of 4,900 lu-e ($945.70). 

« BoUettino dell' Ufficio del Lavoro, Vol. XIII, 1910, pp. 1313-1334. 



1910 



REPORT OF THE COMMISSIONER OF LABOR. 



J 



The Italian glass workers' federation also grants unemployment 
relief in the following three cases: At the close of the season, if within 
two months work is not resumed in the same establishment or in the 
same locality; in case of discharge because of the recognized necessity 
to reduce the number of persons employed; and, finally, when the 
workman's leaving becomes necessary for no fault of his. The bene- 
fits are paid out of the general fund of the association. 

In the lithographers' federation the granting of unemployment 
benefits is made compulsory for the individual sections, under the 
supervision of the central committee; but insurance under this sys- 
tem is optional with the members. A member so insured is required 
to pay a premium of 10 centesimi (2 cents) per week and is entitled 
to relief in case of unemployment for lac^k of labor or any other cause 
for which he is not responsible, except sickness. The unemj)loym(^nt 
benefit is from 1 to 2 lire (19.3 cents to 38.6 cents) per day. l^he 
rules of this form of relief are very strict, requiring appearance at the 
headquarters of the section at least three times a week, and willing- 
ness to accept any employment the local section committee might 
offer him. 

The federation of printers leaves the organization of the unemploy- 
ment relief to its individual sections, which number 125. In 1008 
62,339.45 lire ($12,031.51) were granted for 40,153 days of unem- 
ployment in addition to 9,709.80 lire ($1,873.99) for traveling expen- 
ses, making a total of 72,049.25 lire ($13,905.50). 

The study of unemployment relief, published by the labor bureau 
of the Milan Humanitarian Society in 1905, con tarns an analysis of 
the various forms of unemployment relief given by the Milan labor 
organizations at that time, i. e., before the organization of (he 
unemployment fund by that society. Of the 115 organizations 
inscribed in 1903 in the Milan chambers of labor, 41 had some provi- 
sion concerning unemployment benefits, and 32 were actually fur- 
nishing such. Unemj)loyment benefits were most frequent among 
the employees of metallurgical and mechanical establishments. Out 
of 17 organizations of such employees, only 2 did not furnish some 
relief. Of 14 printing trades organizations, 8 furnished unemploy- 
ment relief. 

The methods and the conditions of payment of such relief are 
naturally subject to the widest variations, these organizations being 
entirely voluntary. The contributions may be uniform for all mem- 
bers or proportionate to the age groups, a smaller contribution being 
exacted from the employees under 18 years of age, or different for 
master mechanics and apprentices, or the contributions may be pro- 
portionate to the salary. The usual amount of contribution is about 
10 to 15 centesimi (1.9 cents to 2.9 cents) per week, and the usual 
amour t of unemployment benefit about 1 lira (19 C(;nts) per day. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1911 

« 

The amounts of benefits vary considerably and may depend upon 
the length of membership, and various regulations exist for limiting 
the length of time during which unemployment benefits may be paid. 
This period is usually limited to about six or eight weeks, aft^r whicli 
some organizations grant half the benefits for another period of the 
same length. In the followmg table are shown the principal statis- 
tics of contributions and benefits of the unemployment insurance 
organizations in Milan : 

67725°— VOL 2—11 ^27 



1912 



REPORT OF THE COMMISSIONER OF LABOR. 

CONTRIBUTIONS AND BENEFITS IN UNEMPLOYMENT 

[Source: Contro la Dlsoccupazione. 



Occupation. 


Members' contributions per 
week (cents). 


Amount of unemployment 
benefits i^er day (cents). , 

< 


Setters-up 


1.9. 3.9. and 5 8 (a) 


9.7, 14.S, and 19.3 

14 5 19 3 and 29 


Armature winders, etc 


2.9,4.8, andC.8(o) 


Bronze workers 


Braziers 


1.0, 1.9, and 2.9 


9.7, 20. J. and 39.0 


Chiseiers 


2.9 and 3.9 (a) 


19.3 and 29.0 

29 3H 6 and 60 2 


Compositors 


4.8 


Blacksmiths 


1.0 and 1.9 


9 7 and 19 3 


Working women in printing 


2.9 


15.4. 

30 9 


Ty|)e founders 


2.9 


Metal founders 


1.0, 1.9, and 2.9 


9 7 19 3 and 'M 


Iron works 


1.0, 1.9. and 2.9 


9 7 20 ,1 and 24 


Printers 


4.8 

ll.G, 17.4, and 23.2(e) 

1.9, 3.9, and 5.8 (a) 


29.0, 38 6, and 50.2 (d) 

19.3. 24 Land 29.0 


Carvers 


Instrument makers 


9.7, li 5. and 19 3 


Tinsmiths, etc 


2.9 and 3.9 


19.3 ami 29 


Photographers' helpers 


2.9 and 4.8 


14.5 and 19.3 


Metal cornice workers 

Mechanicians 

Fine mechanical workers 


1.9, 2.9, and 3.9 (a) 

1.9 and 4.8(1). 

2.9 and 4.8 (a) . 


9.7, 19.3, and 29.0 

9.7a)ul 19.3 

11.6 and 19.3 

19 3 


Lithographers 


3.9, 7.7, anc 9.7 (») 


B utchers 


21.2 (e) 


9.7 


Modelers 


1.9, 2.9, and 3.9.... 


19 3 20 and 38 fi 


Goldsmiths, etc 


7.7andll.6(/) 


14.5 and 24.1 


Workers in skin and leather 


5.8 and 11.6 (<) 


19 3 24 1 and 29 


Polishers 


1.9 


19 3 


Plimibers, etc 


1.9 and 2.9 


9.7 and 19.3 

19.3 and 29.0 

29.0. . 


Saddlers and trunk makers 

Stereotypers and gal vanizers 


9.7 


Dyers, stamners, etc 


2.9 and 3.9. . 


96.5 and 135.1 (ft) 

9.7, 19.3, and 29.0 

4.8,9.7, 14.5, and 19.3.. 

19.3, 27.0, and 33.8 


Metal turners 


1.9, 2.9, 4.8, andC 8 


Metal chiseiers, etc 


1.9, 2.9, 3.9, and 5 8 


Zinc etchers 


1.6, 1.9, and 2.9 


Total 











o These amounts include dues for strike benefits. 

b Not reported. 

« During enture period of unemployment. 

d According to length of meml)ership. 

« I'er month. 



CHAPTER Vn. workmen's INSURANCE IN ITALY. 1913 



INSURANCE ORGANIZATIONS IN MILAN, BY OCCUPATIONS. 1902. 
Pubblicazloni della Societa Umanitaria.] 



Duration of payment of un- 
employment benefits. 



Full benefits. 



8 weeks 

8 weeks 

6 weelts 

60 days 

8 weeks 

6 weeks 

6 to 12 weeks (d) .' 
8 weeks 

(«») 
60 days 

8 weeks 

10 weeks 

8 weeks 

(^) 

13 weeks 

Sweeks 

8 weeks 

60 days 

6 weeks 

6 weeks 

24,30,and42days 

Sweeks 

6 weeks 

2 months 

6weelcs 

3 months 

8 weelffi 

8 weeks 

6 weeks 



Half 
benefits. 



Number 

of 
members. 



8 weeks . 

(6) 
Sweeks 



Sweeks 



4 weeks . 



Sweeks. 



8 weeks. 



(«-) 
6 weeks. 



8 weeks . 



Sweeks . 
8 weeks . 
6 weeks. 



950 
109 
300 
233 
101 
898 
825 
297 
119 
1,200 
190 
750 
138 

75 
210 

41 

95 
117 
230 
527 
230 

75 
360 
987 
240 
108 
170 

60 

666 

1,400 

138 

144 



Number 
unem- 
ployed 
during 
year. 



Days for which benefits were 
paid during year. 



Numbw. 



84 
25 

1 
24 

6 
145 

5 
18 

5 

25 

38 

103 

47 



Average 

per 
member. 



2,532 
329 

96 

349 

230 

6,959 

246 

221 

66 

697 

1,525 

3,229 

264 



2.7 

3.0 

3 

15 

2.3 

7.7 

.3 

.7 

.6 

.6 

8.0 

4.3 

L9 



Average 

per 
member 
receiving 
benefits. 



Amount of benefits 
paid during year. 



11,983 



13 
10 
48 
10 
14 
10 
48 
15 



3 

14 

135 



42 



20 



867 



351 
392 
1,716 
295 
229 
256 
506 
175 



60 
385 

4,847 



1.0 



30.1 
13.2 
96.0 
14.5 
38.3 
48.0 
49.2 
12.2 
13.2 
27.9 
40.1 
31.3 
5.6 



Total. 



Average 
per bene- 
ficiary. 



333 



«■ 25,629 



3.0 

L7 

3.3 

1.3 

3.1 

.7 

.5 

.7 



LO 

.6 

3.5 



42.0 



27.0 
39.2 
35.8 
29.5 
16.4 
25.6 
10.5 
11.7 



20.0 
27.5 
35.9 



S390.33 

58.86 

13.90 

83.83 

66.58 

1,993.16 

38.21 

36.17 

23.62 

134. 52 

373.90 

895.33 

67. 79 



$4.65 
2.35 

13.90 
3.49 

11.10 

13.75 
7.64 
2.01 
4.72 
5.38 
9 84 
8.69 
L44 



&11 



2.3 



2.1 



16.7 



29.6 



64.85 
64.15 

331.19 
28.47 
67.55 
6L76 

115.37 
32.62 



19.11 

59.44 

957.33 



8a96 



8.11 



4.99 
6.42 
6.90 
2.85 
4.83 
6.18 
2 40 
2.17 



a 37 
4.25 
7.09 



4.05 



6,067.13 



7.00 



* Per week. 

i This total is not the correct sum of the items; the figures are given as shown in the original leporL 



1914 



EEPOET OF THE COMMISSIONER OF LABOR. 



I 



The two labor organizations which have granted unemployment 
insurance for the longest time are the unions of compositors and print- 
ers. In the following table are given the main results of their oper- 
ations; for the compositors, for the period 1877 to 1901, and for the 
l)rinters, for 1880 to 1902: 

RESULTS OF UNEMPLOYMENT INSURANCE IN UNIONS OF COMPOSITORS AND OF 

PRINTERS IN MILAN FOR A SERIES OF YEARS. 

[Source: Contro la Disoccupazione. Pubblicazioni della Societk rinanitaria.] 



Item. 



Contributions: 

Ordinary 

Extraordinary 

Total 

Average per member per year 

Benefits paid: 

Ordinary 

Extraordinary 

Total 

A vers^e per member per year 

Average per year 

""ays of unemployment: 

Number for which benefits were paid 

Average per year 

A verage per member per year 

Members: 

Total number for all years 

Number receiving benefits 

Per cent receivinc: benefits 



Compositors: 
1X77 to 1901. 


Printers: 
18H0 to 1902. 


$23,169.81 
$1,599.55 


$9,344.12 
$1,002.32 


$24,769.36 
$1.31 


$10,346.44 
$1.26 


$23,61«.88 
$1,028.61 


$6,672.09 
$73. 48 


$24,645.49 

$1.30 

$985. 82 


$0,745.57 

$0.82 

$293.29 


71.799 

2,872 
3.8 

18,929 

1.182 

().24 


24,573 

1,0<)8 

3.0 

8,208 

921 

11.26 



PEIVATE AND VOLUNTABY UNEMPLOYMENT INSTIBANCE. 
MUTUAL BENEFIT SOCIETIES. 

In a small way the mutual benefit societies (desciibed in the chap- 
ter on sickness insurance) have made some effort to meet the prob- 
lem of unemployment relief for over 25 years. According to the 
statistical reports of these mutual benefit societies, in 1885 there 
were 184 societies which included unemployment relief among their 
various activities, in 1895 there were 234, and in 1904, 417, or 6.2 
per cent of all. No data exist as to the amount of unemployment 
relief thus granted, except for 1885, when it amounted to 32,787 lire 
($6,328). 

The peculiar conditions of the unemployment insurance problem 
require special organizations for dealing with them, and witldn the 
last decade various special unemployment insurance societies have 
been founded in Italy in an experimental way. Though the extent 
of the activity of these societies is small, they are nevertheless of 
importance because the entire subject of unemployment insurance is 
as yet in an experimental stage, and the best method of treating this 
condition still remains to be determined. A brief account of them 
follows. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1915 

SPECIAL UNEMPLOYMENT INSURANCE SOCIETIES. 

Bologna.— As early as 1896 the director of the Bologna Savings 
Bank proposed a new type of personal accounts for the specific pur- 
pose of providing for involuntary unemployment, and for the benefit 
of these accounts the interest from a special fund of 200,000 Hre 
($38,600) was to be assigned. 

Personal account books could be taken out by wage-earners over 
14 years of age, born and Hving in Bologna, in the trades of mason, 
carpenter, blacksmith, roofer, white washer, marble worker, tinsmith] 
glass worker, and plasterer. 

Each depositor was required to deposit within a certain time 5 
Hre or 3 lire (97 cents or 58 cents), according to whether he was of 
age or not. 

After the time for making the deposits had elapsed, the depositors, 
if deprived of employment without any fault of theirs, were entitled 
to receive a daily benefit of 60 centesimi (12 cents) for minors and 1 
lira (19 cents) for persons of age. This benefit was continued for 
not over 40 days, beginning with the sixth day of unemployment, 
and was payable every 3 days. 

If the interest on the special fund should become exhausted the 
depositors were to be entitled to receive the amounts of their deposits 
and interest, the total grant not to exceed 40 hre ($7.72). Unem- 
ployment due to sickness or accidents was excluded, other agencies 
existing for these forms of rehef. 

The depositor was required to furnish a certificate from his em- 
ployer and from 4 wage-earners not unemployed, in the same or 
similar branches of industry. 

The heirs of an insured person who died during the insurance period 
without having received any benefits received the deposits and inter- 
est. The same rule was to apply if the bank decided to discontinue 
the experiment. 

This plan enabled the insured to purchase for 3 or 5 lire (58 cents 
or 97 cents) an insurance of 40 days benefits, or a total of 24 or 40 hre 
($4.63 or $7.72), but, on the other hand, there was the possibihty of 
losing the deposited amount if the person insured did not suffer from 
unemployment within the period. This was the result of the appU- 
cation of the ordinary principle of mutual insurance. But this prm- 
ciple of mutuahty was not suflaciently developed to overcome the 
fear of losing the deposit, and the plan never achieved any great 
popularity. ' ^ 

Buring the first year of the operation of this plan only 27 workere 
availed themselves of this opportunity, their deposits together with 
interest accrued amounting to 117.59 lire ($22.69), while the amount 
or benefits granted reached 660.40 hre ($127.46). 



1916 



REPORT OF THE COMMISSIONER OF LABOR. 



In the second year of the experiment, the masons, roofers, white 
washers, and plasterers were excluded because for them the certainty 
of unemployment existed. It was argued that the theory of insur- 
ance presupposed protection only against an unexpected or uncer- 
tain emergency; then the insurance premium corresponds to the 
degree of probability of the emergency arising; but if the emergency 
is sure to arise, insurance appears to be unnecessary. Other trades 
were added in the place of those excluded, namely, workers in am- 
munition factories, shoemakers, hat makers, tanners, carriage makers, 
leather workers, bakers, pewterere, horseshoers, brass workers, bridge 
workers, saddlers, stonecutters, chisclers, dyers, turners, and glaziers. 
Other changes also were introduced. It was thought desirable to pre- 
fer for insurance such persons as have shown a tendency to some 
providence, and therefore the right to receive benefits was limited to 
persons having a savings-deposit book for at least one year. Persons 
keeping steady employment with the same employer were thought 
worthy of encouragement, as against workmen constantly changing 
one employer for another, and therefore the right to receive benefits 
was limited to persons who had worked for at least one year for the 
same employer. The same limits of the benefits remained, i. e., 40 
days and a total of either 24 or 40 lire ($4.63 oi- $7.72). The re- 
quired evidence of unemployment was simplified. 

In the year 1898-99 further modifications were introduced. 
The required period of ownership of a savings account was reduced 
from 1 year to 3 months and subsequently to one month. The 
required period of continuous employment was also reduced from 1 
year to 6 months. Women working in the specified industries were 
also admitted to this form of insurance, and the list of industries 
was extended to include the employees of military arsenals, tobacco 
manufacturing, and the manufactures of mineral and sparkling 
waters. Private employees and the management of government 
estabhshments endeavored to stimulate this form of insurance by 
special prizes and privileges. But all these modifications and changes 
in regulations failed to arouse the interest of workmen in this insti- 
tution, and the possibility of losing the 5 hre (97 cents) of premium 
proved an effective barrier against any considerable- extension of the 
system. According to the report of the directors, the main cause of 
failure was the insurance principle itself, as the danger of protracted 
unemployment was not great in Bologna, exce))t in the building 
trades, to which the insurance principle was claimed to be inappli- 
cable. As a result the insurance i)rinciple was entirely abandoned 
and in its place was substituted a system of indiyidual savings for a 
definite purpose, with a subsidy to such savings added mainly to 
promote the habit of saving. New regulations were tlicrefore pre- 
pared in 1901. The exclusion of the building trades was discon- 



CHAPTER VII. WORKMEN ^S INSURANCE IN ITALY. 1917 

tinned, since only by the difficulties of apphcation of the insurance 
principle was this exclusion justified. 

The basis of the new regulations was individual accumulations by 
means of deposits in the savings bank, upon which the bank was to 
pay interest. The interest upon the fund of 200,000 lire (S38,G00) 
was to be distributed among this group of depositor proportionately 
to their deposits during the current year, but not to exceed the actual 
amount of deposits, or 40 lire ($7.72), to one person within any one 
year. These additional credits were to be interest bearing like the 
original deposits. The essential features making these saving 
deposits a form of unemployment rehef are the rules that with- 
drawals from the account may be made only if proof is furnished 
that the depositor is at the time unemployed without any fault of 
his and that the withdrawals must not exceed 1.50 hre (29 cents) 
per day. These withdrawals must be made by the depositor in 
person, and if he, while out of work, endeavors to make withdrawals 
through another person without giving a satisfactory reason for such 
action he loses the credits already given him, mth the interest 
accrued, and the additional credits due during the year. The 
additional credits and the interest accrued on these remain on the 
account of the depositor for the following year if not used during 
the current year. In case of death of the insured these credits 
and the interest accrued, if not used by the depositor, revert to the 
fund, while the contributions made by the insured and interest on 
these contributions revert to the heirs. Thus, a workman partici- 
pating in tliis plan of unemployment relief does not run any risk 
of losing the savings made. The new plan of 1901 reduced itself to 
gratuitous contributions by the bank, without any risk on the part of 
the depositor. This proved more popular, and the number of depos- 
itors grew so large that it soon became doubtful whether it would be 
possible to pay the maximum bonus of 40 lire ($7.72) allowed by the 
regulation. As this maximum Hmit was likely to give rise to an 
impression that such bonuses would actually be paid, it was ehmi- 
nated from the regulation, and the determination of the limit was left 
entirely to an administrative council. 

In the same year persons under 18 years of age were excluded, and 
to persons from 18 to 21 years the daily compensation was limited 
to 1 lira (19 cents), because it was feared that in case the daily 
benefit was higher than the earnings of the young pei-sons the system 
of unemployment relief might prove a factor for the encouragement 
of lazmess and unemployment. Later it was also decided to exclude 
lemale wage-earners because of the difficulty experienced in estab- 
lishmg the lack of employment in lines of female work. Toward the 
end of 1901 the influx of depositors was so great that it was found 
necessary to increase the fund by another 100,000 hre ($19,300) and 



1918 



BEPORT OF THE COMMISSIONER OF 1.AB0R. 



I 
I 



to limit the members to residents not of the province, but of the city 
of Bologna. The increase of depositors under this form continued, 
however, and by 1903 it became evident that a further reduction of 
the bonuses below an amount which would be at all adequate was 
necessary unless further restrictions were placed in the classes of 
persons admitted. All wage-workers under age were therefore 
excluded under the assumption that they had lighter obligations and 
often had the chance of obtaining reUef from their homes. Persons 
over 65 years of age were also excluded because at that age unem- 
ployment assumes the nature of invaUdity and must be handled as 
such. Notwithstanding these limits the cost of this system grew 
very rapidly, and soon various abuses asserted themselves, such as 
deception concerning conditions of unemployment, voluntary unem- 
ployment, fraudulent deposits through loans so as to increase the 
available sum of benefits. The detection of these fraudulent prac- 
tices became a very difficult matter. Against the commonest form 
of fraud, that of an employed wage-worker receiving unemployment 
benefits, the remedy was proposed of demanding ihe daily apj)earance 
of those claiming benefits so as to establish the fact of unemployment. 
It was even suggested that the unemployed appear twice a day, since 
it was quite apparent that no employed worker could absent himself 
twice a day from his shop and keep his employment. But the con- 
sideration of the discomfort to the unemployed by doubUng trips in 
all kinds of weather, sometimes over great distances, with the temp- 
tation to spend, prevailed against this plan. 

The measures taken for prevention of fraud were not altogether 
satisfactory, and in 1903 the director was forced to announce at a 
meeting of the unemployed that unless some method was devised to 
prevent fraud this activity of the bank would have to be discontinued. 
As a result a commission of labor delegates was elected, consisting of 
five members. The commission brought in the following suggestions : 
That the subsidized unemployed be required to assemble daily, that 
they remain there for 2 hours (1 to 3 p. m.), the doors being closed 
after the appointed hour. 

This plan was not adopted because it was feared that it would 
cause too much complaint and irritation. The estabUshment of a 
vigilance committee was also suggested, but objection was found to it 
on account of the hostility to which the members of such committee 

would be exposed. 

It proved difficult to suggest a way to counteract the other frauds 

mentioned. 

Altogether there were 691 persons registered under this form of 
insurance or rehef in 1903. Their deposits and other credits amounted 
on December 31, 1903, to 31,570.87 lire ($6,093.18). After the win- 
ter unemployment, i. e., on March 31, they equaled 20,252.64 fire 



CHAPTER Vn. workmen's INSURANCE IN ITALY. 1919 

($3,908.76) and on May 31, 20,665.86 lire ($3,988.51). The fund from 
which interest is used to pay the bonuses to the persons insured 
equaled 356,300 lire ($68,765.90). 

There evidently were two well-defined periods in the history of 
this experiment. As an insurance scheme it was a complete failure 
because the classes concerned refused to take any interest in the 
matter. In the latter stage it became a system of subsidizing 
individual savings and rapidly became popular, but led to various 
forms of mahngery and fraud. It has also been pointed out that 
because of the total absence of any connection between this sys- 
tem of rehef and the institutions for finding employment it had no 
influence on the reduction of the unemployment period. 

The total number of savings books issued by the Bologna Savings 
Bank under the form of unemployment insurance up to October 3^, 
1904, was 865, of which 173 became extinct, leaving active accounts 
on that date of 692. By occupation, these owners of books were 
distributed as follows: 

NUMBER OF' SAVINGS BOOKS ISSUED FOR UNEMPLOYMENT INSURANCE BY THE 

BOLOGNA SAVINGS BANK UP TO OCTOBER 31, 1904, BY OCCUPATIONS. 

[Source: BoUettino dell' Ufficio del Lavoro, Vol. IV, 1905.J 



Occupation. 


Number of savings books — 


Occupation. 


Number of savings books 




Issued. 


Extinct. 


Current. 


1 

Issued. Extinct. 

1 


Current. 


Masons 


690 
61 
22 
17 
14 


129 

21 

6 

1 

4 


561 
40 
16 1 
16 
10 


Clampnt^rc 


13 
48 


4 

8 




White washers 

Mechanics 


Another 


9 

m 


Laborers 

Varnishers 


Total 


865 


173 


692 







This form of insurance was evidently used almost exclusively by the 
building trades, for whom some period of unemployment is certain. 
According to the regulations, the distribution of the bonuses to the 
accounts was made on December 31, and on the basis of the deposits 
made during the twelve months ending on October 31 preceding. 
In the following table is shown the amount of deposits for the year 
November, 1903, to October, 1904, by months, and it appears quite 
evident that the deposits did not rise to any considerable amount 
until toward the end of the year. 



1920 



EEPORT OF THE COMMISSTOIN^ER OF LABOR. 



NUMBER AND AMOUNT OF DEPOSITS FOR UNEMPLOYMENT INSURANCE IN THE 
BOLOGNA SAVINGS BANK FOR THE FISCAL YEAR ENDING OCTOBER 31, 1904. 

• [Source: Bollettino dell' Ufficio del Lavoro, Vol. IV, 1905.) 



Year and month. 



1903. 

November 

December 

1904. 

January 

February 

March 

April 



Deposits. 



Number. 



14 
3 



1 
1 

17 
85 



Amount. 



$12. 35 
4.25 



1.93 

.29 

5.60 

62.78 



Year and mouth. 



i 904— Concluded . 

May 

June 

July 

August 

September 

October 

Total 



Deposits. 



Number. 



223 
335 

454 
415 
397 

417 



2,362 



Amount. 



1108. 30 
261.71 
372. 70 
350.68 
343. 27 
358. 46 



1,932.32 



The total amount credited to these 692 accounts hi October, 1903, 
was 18,931.02 Hre ($3,653.69), so that the total amount deposited 
on October 31, 1904, reached the sum of 28,943.22 Ure ($5,586.03). 
The amount of bonuses distributed was 7,440 lire ($1,435.92), only 
328 persons quahfying for such bonuses. The total amount with- 
drawn for unemployment reHef during the following eight months, 
November, 1904, to June, 1905, was 16,290 Hre ($3,143.97), distrib- 
uted, by months, as follows: 

NUMBER OF DAYS OF UNEMPLOYMENT AND AMOUNT V/lTHDRAWN FROM THE 
BOLOGNA SAVINGS BANK FOR UNEMPLOYMENT RELIEF FOR THE EIGHT MONTHS 
ENDING JUNE 30, 1905. 

[Source: Bollettino dell' Ufficio del Lavoro, Vol. IV, 1905.) 



Year and month. 



1904. 

November 

December 

1905. 

January 

February 



Number 
of days 
of unem- 
ployment. 



74 
545 



3,956 
4,192 



Amount 
with- 
drawn. 



$2L42 
157. 78 



1,145.26 
1,213.66 



Year and month. 



1905— Concluded 

Manh 

April 

Mas 

Jim 

Total 



Number 
of days 
of unem- 
ployment. 



1,732 
187 
146 

28 



10,800 



Amount 

v/ilh- 

drawn. 



1.501.41 

54.14 

42.27 

8.11 



3, 143. 97 



The entire activity of this form of insurance might be designated 
as an effort to encourage the saving of summer earnings for use dur- 
ing the winter unemployment. Some such process is inevitable in 
seasonable trades, like the building trades, to which almost all the 
beneficiaries of this plan belong. In the case of the liologna Savings 
Bank a very high bonus of over 50 per cent is given to the persons 
practicing this form of saving. 

Notwitlistanding the modest limits of this activity, it was again felt 
necessary, in 1905, to ''proceed cautiously," as the director of the 
bank states in his last report, («) so as to prevent an undue pressure 

o Bollettino dell 'Ufficio del Lavoro, Vol. 'XIV, Oct., 1910, pp. 697-702. 



- 1 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1921 

upon the resources of the bank. An entirely new set of regulations for 
this part of the activity of the savings bank was therefore prepared in 
1905 and went into effect in the beginning of 1906. It embodied 
mainly the foUowing two new principles: First, that only those deposi- 
tors who actually suffer from unemployment participate m the distri- 
bution of the interest on the endowment fund. Tliis was claimed to 
be more logical than the distribution of the interest among all the 
depositors. Secondly, right was given to withdraw the deposits after 
the period of ''insurance" had elapsed. 

The regulations adopted in 1905, and still in force, provide for the 
following system of unemployment reHef: 

The Bologna Savings Bank has a special fund of 300,000 lire ($57,900) 
for unemployment relief of such persons as are wiUing to make sa^gs 
for the lean months in times when there is enough work. The bene- 
fits of this fund are open only to men between 21 and 65 years of age 
who live and work in Bologna, who are employed in manual labor, and 
who work for hire, being employed on a daily or weekly wage. In 
order to participate in these benefits the men must obtain speciaf unem- 
ployment deposit books. Each person may possess only one such 
book. A very important provision is the rule which gives the admin- 
istration of the fund the right to determine each year how many such 
unemployment deposit books shall be issued. Applications for these 
books must be made within a certam time of the year, namely, between 
March 1 and May 31, and are acted on in the order in which they have 
been made. 

The deposits must be made out of the personal earnings of the 
depositor and must not exceed 5 lire (96.5 cents) per week. These 
deposits draw the ordinary rate of interest on the same conditions 
as all other deposits in the savings bank. In addition to this normal 
rate of interest, however, these deposits entitle the depositor to a 
participation in the interest of the unemployment fund, there bein*' 
two grades of benefits. The first grade consists of depositors who 
deposited 40 lire ($7.72) or over, and for them, according to the lan- 
guage of the regulations, "1 lira (19 cents) is reserved for every lira 
deposited, but not over 40 lire ($7.72);" in other words, to all of the 
depositors of the first grade a credit of 40 lire ($7.72) is reserved. 
The second grade consists of depositors who have deposited less 
than 10 lire ($1.93); for them one-half of a lu-a is reserved for each 
lu-a deposited up to 20 hre ($3.86). 

Both the deposits and these reservations of benefits are for the 
purpose of unemployment rehef . Moreover, the savings of one year 
are intended for relief during the following year. During the cur- 
rent year, therefore, in which the deposits have been made, they are 
not subject to withdrawal. But during the next year they may 
withdraw such deposits, together with the share of the benefits on 



EEPORT OF THE COMMISSIONER OF LABOE. 



1922 .>^^-— 

f „f v.pin<r unemployed without any 
presentation of sufficient P-°f «f^;^';» ^J^^ J their own deposits 
Lit of their own If, ho™ > t^y w th ^^^^^^ ^^^ 
without such proof, they lose a I r^M t ^^^ ^^^^^^ ^^^^ 
ployment withdrawals «i"/\^°* ^^'Jf^^ ^i^uy allowance of 1.50 hre 
^le such unemployments last- This ^f ^j of the benefits 
consists partly of their o';^^ .^^IP^/J, JeposUois of the first grade, 
reserved, in the foUowmg 'atio-J-or tu P ^^^^ ^^^^ allowance 
i. e., those who have accumulated 40 hre ^^ ^^^.^ ^^ ^^^^^.^^ ^^^^ 
of 1.50 lire (29 cents) consists of 0.75 In ^ ^^ ^^ ^.^^ ^^^_^2) of 

0.75 lira of the reserved ^'"^^^'l' ~^^,^uyr^ of the second grade 
the latter is exhausted, and f°; ^^^/^l^^ii,^ (9.7 cents) from the 
1 lira (19 cents) of the deposits, and 5o ur 
reserves up to the lunit of 20 hre ($3.86). ^^^ ^^^^^^ 

In order to obtam these benefits the aep ^^ ^^^^^^^ ^^ 

present themselves in P™' ^J% ; benefits may, however, be 
requked proof of ^^^^^^^^"^^'^JXii Bologna for other locali- 
giL even to such ^P^^^^^.^w^^^^^^^^ in their search, 

^^rrt'^^ -— --^ ^' ^"" "^- 

employment. _ f ^j^^ Bologna Savings Bank 

A complete ^''^^"J^*/ ^J^tj^^ a^ Ji„Lstration, covering the years 
was recently pubhshed »>y ^f 7"? ,^^ j,ew regulations had the 
1904 to 1910. The account -^-'-J^;.^; J^rfng the first year of 
effect of restricting the deposits, espec laUy S, ^^^^^ ^^^^ ^^ 

he full application of the new rules ..e 1907.^^^^^ ^,^^^ ^ 
the total amount of benefits paid out bee .^^ ^^^^_ ^^^ ^ 

lire ($2,289.55) -J^^Vt'othet^lepols has materially declined, 
proportion of the b;"«fit. t*> riie *o*al p .^ ^^^^ ^^ ^j ^ ^^^ 
from 66.6 per cent ^'^^^04 to 26J P .^^^^^^^^j_ ^^ „ ^e 

ment fund at the same t«^^ ^^ °f ^" succeeded in preventmg the 
admitted that the new regulaU<>^ have s ^^^^ ^^^ 

threatening danger oV''''''V„ be admitted to participation in the 
the maximum limit of Pf^^"- ^° ^^^^^^^^^^ and for the following 
benefits was determined ^Y the bank at ' j^ therefore 

years at 750. The whole -t-y "^^^ 'J^^, .uffieulties in the 
Lamly interesting as an f l;;2f ^^^^^^S i, based upon the pnn- 
way of an unemployment relief P^*" yi voluntary savmg 

Tipl of subsidized Pf;;-rier[ttTi? character building, as 
was evidently selected fo'^J.^J^f ^^ a combmation of econom c 
being the best method o^ -^ef th ^^^^^^^ ,^,,^ the subsidies made 
and educational effcc*^' ™ "^ „„iess the work was surrounded by 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1923 

OPERATIONS OF THE UNEMPLOYMENT FUND OF THE BOLOGNA SAVINGS B VVK 

1904 TO 1910. »AAK, 

[.Source: BoUettlno dell 'Ufficio del Lavoro, Vol. XIV, 1910.] 



Number of deposit 
books. 



Year. 



On 
Jan- 
uary 
1. 



1904. 

1905. 

1906. 

1907. 

1908. 

1909., 

1910. . 



690 
680 
752 
732 
729 
752 
795 





Dis- 


Is- 


con- 


sued 


tin- 


dur- 


ued 


ing 


dur- 


year. 


ing 


jyear. 


55 05 


126- 51 


35 


55 


94 


97 


99 


76 


96 


5.3 


C35 


C43 



At 
end 

of 
year. 



Total 
cred- 
its on 
books 
Janu- 
ary 1. 



Deposits during year. 



Enti- 
titled to 
partici- 
pate in 
Benefits. 



Not 
enti- 
tled 

to 

par- 
tici- 
pate 

in 
bene- 
fiits. 



680 
752 
732 
729 
752 
795 
C787 



$0,08.3.53 
6.935.94 
8, 402. 75 
6.624.61 
4.257.95 
4, 734. 49 
4,923.39 



Total. 



Inter- 
est on 
de- 
pos- 
its. 



Benefits 

distrib- 
uted 

from en- 
dow- 
ment 

fund, (a) 



j Total 
deposits, 

interest, 
and 

benefits. 



Amount on 

books at end 

of year. 



Total. 



?1, 917. 841.. 
2, 449. 54 S96. 35 

2, 444. 23 

2,258.83 13.86 
2,215.69 10.95 
2,482.08 1.21 



Year. 



Amount. 

of endow- 
ment 
fund. 



$1,917.84 
2, 545. 89 
2, 444. 23 
2, 272. 69 
2,226.64 
2, 48:3. 29 
c 897. 78 



Aver- 
age 
per 
de- 
pos- 
itor. 



$64. 
152. 
167. 
94. 
112. 
116. 
C109. 



I 



94 $1,657 
37 2,289. 

884. 
497. 

878. 78; 3, 478. 45 
e 376. 78 cl, 384. 36 



62 
89 
34! 
38 
80 



29 $3, 640. 07 $6. 935 

55 4,987.81; 8,402 

2.61L85; 6.624. 

3.2.51.66! 4,257. 

2.8.36.15! 4.734. 

4.923. 

4,037. 



.08 
17 



94 $10. 20 
75 11.17 
9.05 



61 

96' 
491 
39 
65; 



5.84 
6.30 
6.19 
5.13 



1904.. 
1905.. 
1906.. 
1907.. 
1908.. 
1909.. 
1910. . 



$07,347.00 
68, 804. 50 
70.039.70 
70,618.70 
71,101.20 
71,101.20 
71,101.20 



Mem- 
bers in- 
scribed 
on rolls 
during 

pre- 
ceding 
year for 
partic- 
ipation 
in ben- 
efits. 



Members ad- 
mitted. 



First 
grade. 



Second 
grade. 



Mem- 
bers 
sus- 
pend- 
ed. 



Withdrawals. 



522 
.333 
372 
450 
444 
564 
552 



81 
183 
286 
296 
324 
399 
400 



Benefits. 



Amount. 



Pc-r 

cent of 

total. 



Deposits. 



Amount. 



Per 

cent of 

total. 



Total. 



438 
145 

71! 

46 
110 
137 
142 



3 

5 

15 

108 
10 
28 
10 



$1,85,5.49 

1.657.29 

2,289.55 

884.08 

497. 17 

878. 78 

c 376. 78 



Days of 
unem- 
ploy- 
ment. 



66. 6' 
47. ij 
52.2 
15. 7| 
21.1 
26.7 
C15.3; 



$932. 17 
1,863.711 
2. 100. 45 
4.734.23, 
1.862.441 
2. 410. 77i 
« 2, 080. 31: 



33.4 
52.9 
47.8 
84.3 
78.9 
73. 3 
C84. 7 



$2. 787. 66 
3,521.00 
4.390.00 
5,618.31 
2,350.61 
3,289.55 

"2, 463. 09 



6,107 
6. 194 
3,453 
5.977 
<-2,oS2 



&"--««-S-^^^^ 



pajTnent of unemploj-ment 

c ?o"rXK„^'jrtX' omeTo^"' "" "-'""""o- »' "--flte was made this year. 
«* Not reported. ^ 

VENicE.--The unemployed workmen's benefit society of Venice (La 
SocM Prev^nza per gli Operai Disoccupaii in VeJzi^ was estal^ 
hsled by some pnvate persons with a charitable purpose in 1901 
and legally incorporated by tlie royal decree of June 30 1901 ' 

The purposes of this society are to facilitate as far as possible the 
p lacing of unemp eyed workmen, to assist them with^empori^ 
ub Idles m case of involuntaiy unemployment, and to assist Ln S 
settlement of disputes between employei^ and employees. 

The first purpose is met by gathering all available information 
concernmg the demands for help, which information is fumXd to 
persons interested, and occasionally also by furnishing traveling 
expenses to those who have obtained employment out of towi 



1924 



EEPORT OF THE COMMISSIONER OF LABOR. 



The provision of the by-laws requiring the society to act iis a con- 
ciHator in disputes between employers and employees has remained 
a dead letter, the main function being that of granting aid to unem- 
ployed persons. Although originally a private organization, the mu- 
nicipahty of Venice went to its aid. In 1904 the amount contributed 
by the municipaUty of Venice was 10,000 lire ($1,930) , by the province 
of Venice, 1,000 lire ($193), and the contributions of honoiary mem- 
bers and patrons amounted to about 2,000 lire ($386). 

The contributions of the wage-workers insured during the first 
three years of the activity of the society was 40 centesimi (8 cents) 
per month, but in 1904-5 were increased to 1 lira (19 cents) per 
month by the executive council of the society. This increase of 
contributions was partly offset by an increase of the benefits from 
1.25 lire (24 cents) to 1.50 lire (29 cents) per day to married workmen 
and to widows with more than two children. But the main purpose of 
the increase is admitted by the administration to have been to check 
the rapid growth in the number of insured, which became alarming 
in view of the absence of all limitations as to the duration of the 
benefits and the cheapness of the rates. 

The activity of this society is admitted by its administration to 
be in the nature of an experiment, requiring further study, especially 
for the purpose of adjusting the finances of the society. Its essential 
difficulty is evidently to be found in the fact that it is primarily a 
disguised form of charity, a very small share of the revenue being 
derived from the contributions of the insured. 

The activity of the society for the fiscal years 1902-3 and 1903-4 
is shown in the following table: 

NUMBER OF MEMBERS AND NUMBER, AMOUNT, AND AVERAGE OF BENEFITS PAID 
BY THE UNEMPLOYED WORKMEN'S BENEFIT SOCIETY OF VENICE, 1902^-3 AND 1903-4, 
BY INDUSTRIES. 

[Source: BoUetino dell' Ufficio del Lavoro, Vol. II, 1904.1 



Industry. 



Metallurgy (a) 

Shipbuilciiag, etc 

Building trades 

Woodworking 

Painters, decorators, etc 

Unskilled laborers and others 
not specified 



Total. 



19()2-3. 



Num- 
ber 
of 
mem- 
bers. 



190 
34 
91 
15 
98 

17 



445 



Num- 
ber 
re- 
ceiv- 
ing 
bene- 
fits. 



74 
25 
32 
6 
70 

8 



215 



Per 
cent 
re- 
ceiv- 
ing 
bene- 
fits. 



38.9 
73.5 
35.2 
40.0 
71.4 

47.1 



48.3 



Total 
benefits. 



$572.33 

229.96 

306. 87 

♦)0.50 

670.58 

84.44 



1,924.68 



Aver- 
age 

bene- 
fits 
per 

beno- 
flcl- 
ary. 



1903-4. 



17.73 
9.20 
y. ow 

10.08 
9.58 

10.56 



Num- 
ber 
of 
mem- 
bers. 



8.96 



151 
63 
79 
16 

119 

24 

452 



Niun- 
ber 
re- 
ceiv- 
ing 
bene- 
fits. 



95 

68 

45 

7 

100 

24 



329 



Per 

cent 
re- 
ceiv- 
ing 
bene- 
fits. 



62.9 
92.1 
57.0 
43.8 
84.0 

100.0 



72.8 



Total 
benefits. 



$894.46 

676. 45 

476. 42 

91.19 

1,015.95 

266.58 



3,321.0 6 



Aver- 
age 
bene- 
fits 
per 
bene- 
fici- 
ary. 



$9.42 
9.94 
10.59 
13.03 
10.16 

11.11 



10.09 



a Including only iron and steel manufacturing in 1903-4. 



CHAPTEB VII.— WORKMEN 'S INSURANCE IN ITALY. 1925 

Milan -Perhaps the most ambitious effort in the line of unem- 
ployment relief ,s that made by the Milan Humanitarian Society. 
, Lr I ^'i^r**^ institution for various forms of social betterment 

2S , «Q9 1 ^ ^ L^"'^ "^ ^'°'^'"' ^°'«^ ^""^ ^^^ died on Octobe; 
28 1892, leaving his entire fortune of over 10,000,000 lire ($1,930,000) 
to this mstitution Because of continued htigatien (see the Su;vey 
July 10, 1909, vol 22, p. 541), the operations of the society did not 
begin until 1900. by which time the accrued interest had LcreaLd 
the endowment up to nearly 13,000,000 lire ($2,509,000). TVhile 
the scope of this mstitution is very broad, including technical educa- 
tion, housing reform, employment offices, and statistical study of 
abor problems one of the main, if not the main object at present 
IS the rehef of the unemployed. The scheme of the unemploved 
relief or msurance adopted by this organization is especiaUy interest- 
ing because It follows the experience of the well-known Ghent svstem 
«,Tief \*r?. ."P'''^ ^"^i'i'f t« l^bor organizations granting such 

Si . V ^^^ ^^^ f'^'"^'' '"^ ^d'l'*'"" t« contributing finan- 
cially to the support of the unemployed, aims mainly at stimulating 

self-help and mutual help among the organized workers a. a means J 
counteracting the harmful effects of unemployment 
Tnuf't ""^^Ployment insurance fund, which began its operations on 
July 1, 1905 is regulated by the following constitution: 

Constitution of the Milan Unemployment Benefit Fund. 

aaeociations, with participatiorand c^Deradon n? Mif.^ '**'?-*°'' ^'^'"^ ^^'"S^ 

Humanitarian Society, a^Xany oth^Sett^ w^ 1° ^,?tt'5'''-^ societies, of the 

Art. 2. This institution aims to^coordin^to thrindivU.K^^ ** participate. 

s^f!.rdfieii:l'd^'£^Ti'^^^^^^^^^ 

anc^e W the cooperative ^:^'S^'^:^Z^^^:^:^ ^':i^ 

by'dSl se^S^iauSirdZ'ln^^S'stplv rfla^"'^^^' ?^ ^'^ ^"^^ -"*<» 
suspensions of work, independenTof the wnf ^ ^thl "i; '"'^"^'■"'^l ^-^e^. and other 

breaking down of machinerrc^nflrlridons etc *' ^"'^^'' "^ '''^"''^^ "'^ ^'^'^'^ 

whlc'h.- besTd^^'tSplo^m^frelLrnS '" ^""^ "-«'"?i?° «'* associations, 
dence, and cooperation ' P^"* o^eraims of social betterment, pro^il 

th^PTOt^Y^'n\SoS bvXL'tl^^^^^ 'i'!i;™"'« ••'<' ™-<»''i<'»^ ^-go'ating 
. ent CToups of workere belon^nt'ii ,h^ membera and the granting of subsidies to differ" 
of wage ^y« fte tZfbmtv ^dtS^n^t^' r'^ consideration of the «>nditions 
tions must'be approven^ the Znc^^f Jl^°* unemployment. But these condi- 
therefore, present <S of theS Zs^?tnttLl^- ""titut.on. The associations must, 
the members of ti^o olZl'^^'^CT^'rc^TZiV^^] "' "^'^ ^'^^^^^^ - "^^ 

fi4\\f Jte''r;'rIXftiuhtL\?ct1"P^ '" the institution with their 
benefit of the same clS of workere of XZh» ^ii^if '^^'^'' ^ designated only for the 
consists. workers ol whom the membership of the cooperative society 

l^he'dby theUSL:!c^tioSll'ftd*ou?of ^h"'"f^ ^ -'»"- 

of the amount of the bittefiS b^t mn,f w aKT '"""^^i '^. ^'^"'^ "t 50 per cent 

and shall be gmnted ^r'^^'t.c^^l^'loZ'o^^^iXsT^^Z^^^^^^^ ^' '^^^ 



1926 



EEPORT OF THE COMMISSIONER OF LABOR. 



The administrative council of the institution shall have the power to reduce in the 
course of the year the rate of this addition in accordance with the gravity and ^ten- 
^ I^^TtJ? ^^"'f?^'.-^'''* also according to the finanrial condition of the institution. 
f>,f kI; fif ^- J^^W''^''''' ^^^^ "^""^ contribute any additional payments whenever 
the benefat paid to the unemployed member by the association shall exceed 1 50 lire 
{Z\f per cents) per day. 

of Tb addition of the institution to the benefits paid by the associations shall be paid 
P^fi^^trll^^'^^ "^V"^^ ^^^^^ individuals adherin/to the associationn, after pres 
of these aicounte''^"'^ with statements of amounts paid out, and after the auditing 

heWina t^Hl!o f.T/^?^''^ ""^ the associations granting unemployment benefits and 
belonging to the institution must also be registered in some employment office 

ART. 10 rhe associations must keep accounts of their membership and of the unem- 
Se^Sudon^ according to a uniform plan determined by the administration of 

Art 11. Those members who, in the opinion of the council, do not belong to the class 
o workingmen, those who have deceived or tried to deceive the institution under the 

wJSV nffl^'l^'IfT^^K''^'-'';.'''^'' ?^Xe refused employment offered by the employ- 
ment oflice, shall lose the right to obtain any benefits. J h' ^y 

consktin^o?^^ ^P^^^^io^ of the institutions are supervised and managed by a councU 

(a) The president of the Humanitarian Society; 

(6) Another representative of the Humanitarian Society as chairman- 
c) Two representatives of the trade associations belonging to the institution; 
and representative of the cooperative societies contributing to the institution; 

Finally, a representative of those who contribute annually at least 5,000 lire ($965) 
. Ihe representatives of the trade associations and cooperative societies are elected 
m annual meetings of the delegates of the individual associations and cooperative 
societies. Each association is entitled to one vote. ^wuperauve 

The associations having more than 100 members have one vote for each 100 members 

ySr'^nd ar'?re^l''1wr°'^ ^^""^ ''^^'^^' ^^^ ''^'''''^ ^^^""^^ '^°'^''' '"^ ^®^'^ ^^ 

om^"e£S^ihBf^^ P^^^^^^^ ^^^ ^^- ^--' t^- headquarters, 

Art. 14. The institution is established experimentally for one year. 

The organization and plan of this form of unemployment insurance 
appears very plainly from the brief constitution quoted. It follows 
quite closely the plan of the so-called Ghent system. It began opera- 
tion on July 1, 1905. 

In the spring of 1909 an unemployment benefit institution was 
organized in Brescia by the local branch of the Milan Humanitarian 
Society. The constitution of tliis new institution follows closely 
that of the Milan fund. The subsidy given by it to the unemi)loy- 
ment benefits furnished by the trade associations is determined at 
50 centesimi (10 cents) per day for not exceeding 40 days. It may 
be increased to 75 and 90 centesimi (17 cents and 1,9 cents) to those 
persons who carry membership in two or three trade associations 
granting unemployment benefits. According to the latest informa- 
tion available this institution has not yet begun its operations be- 
cause the necessary trade association unemployment funds have not 
yet been organized. 

The general results of the activity of the unemployment ins/i-- 
ance fund of the Milan Humanitarian Society are shown in ihe 
following table for U years, from July, 1905, to the close of l{fOO. 
The fund began operations on July 1, 1905, with 27 labor organiza- 
tions affihated and 6,449 members. By the end of the year the 
number of affihated organizations had increased to 33, and by^ the 



/ 



CHAPTER Vir.— WORKMEN'S INSURANCE IN ITALY. 192T 

(Source: BoUettino dell' Ufficio del Lavoro, April 1909 June ico q ■ .. r^ 

_ cupazione, ColIoeamc'Ltl: SdMn •Muino,^!^]™'"*'^^*^' *^"«'»«' ^^^ 



Year. 



Num- 
ber of 
amii- 
ated 
organi- 
zations. 



Number 
of mem- 
bers on 
Dec. 1. 



JMembers receiv- 
ing benefits. 



1905, July-December 

190«> 

1907.... 

1908... 

1909.... 



33 


8.363 


30 


8.913 


40 


11,944 


49 


12, 198 


49 


10,931 




Number 

of days 

for which 

benefits 

were 

paid. 



Amount of benefits paid. 



12,317 
12. 242 
36, 046 
26. 309 
25,090 



By unions. 



$2. 776. 12 
2. 920. 52 
7, 4S9. 49 
6.347.18 
6, 958. 83 



By Human 
iiarian 
Society. 



$1,091.05 
1.124.76 
3. 408. 75 
2, 485. • 8 
2.372.42 



Average num- 
ber of davs for 
which benefits 
were paid. 



Total. 



$3,867.17 
4.045.28 

10.S9S.24 
8.832.86 
9,331.25 



Average amount of benefits paid. 



Average amount of bene- 
fits paid per day. 




1905, July- December 

1906 

1907 

1908 

1909 



67725°— VOL 2—11 



1928 



BEPOBT OF THE COMMISSIONER OF LABOR. 



The distribution of the number of beneficiaries and of days for 
which benefits were paid is given in the next table for 1907 and 1908, 
by causes of unemployment. In 1908 dull season and industrial 
crises were responsible for over 80 per cent of all days of unemjdoy- 
ment. In 1907 more than half of the unemjdoyment was caused by 
lockouts and shutdowns and discharges in consequence of labor dis- 
disputes. 

NUMBER OF PERSONS COMPENSATED AND NUMBER OF DAYS FOR WHIC H BENEFITS 
WERE PAID BY THE MILAN HUMANITARIAN SOCIETY IN 1907 AND 1908, BY CAUSES 
OF UNEMPLOYMENT. 

[Source: Bollettino dell' Ufflcio del Lavoro, May. 1908, and April, 1909.1 



Number receiv 
ing benefits. 



Days for w'hich benefits v/ere paid. 



Causes of uaemplojrment. 



1907. 



Dull season 

Dismissal because of application of new wage scales 

Lockouts and shutdowns 

Suspension of work because of strike of other work- 
men supplying new material 

Industrial crises 

Discharge subsequent to labor disputes 

Closing of establishments through bankruptcy 

Suspension of operation for the purpose of taking 
stock 

Total 



1908. 



1907. 



1908, 



652 

86 

458 

15 

(^) 
266 

(*) 



787 
63 

eo 

60 

57 
91 
17 



Number. 


Per 

cent of 

total. 


Number. 


a 15,311 

1,344 

12,983 


42.01 

3.C» 

35.64 


20,308 
2.007 
1,594 


551 
6.237 


1.51 
"i7.'i2' 


878 

711 

COo 

9S 


(&) 




50 



Per 

cent of 

total. 



77. 42 
7.63 
0.06 



1,477 



1,14.T f36,426 



100.00 



5.34 

J. 70 

J. 30 

.36 

.19 



26,309 



100.00 



a Including industrial crises, closing of establishments through bankruptcy, and suspension of o:>eration 
for the purpose of taking stock, 
ft Included \vith dull season, 
c Including a duplication of 380 days due to benefits being paid }*y two societies to the same persons. 

The main results of the activity of the Milan unemployment insur- 
ance funds are shown in the following table by months of the year. 
The table is interesting mainly in showing the difficulty of drawing 
any definite conclusions as to the probable unemployment by seasons 
of the year. In 1905 the greatest amount of unemployment happened 
in Jul}^ August, and September; in 1906, in July and August; in 1907, 
in August, September, and December; and in 1908, in January. 

The table shows that the number of unemployed persons receiving 
benefits from the Humanitarian Society is often somewhat smaller 
than that receiving benefits from the labor organizations themselves. 
Occasions arise when the subsidy of the Humanitarian Society is 
denied for noncompliance ^\^th some of the regulations. 

/■ 



/{ 



CHAPTER VII. workmen's INSURANCE IN ITALi*. 1929 

UNEMPLOYMENT RELIEF BY THE HUMANITARLA.N SOCIETY AND THE TRADE 
ASSOCIATIONS OF MILAN, BY MONTHS, JULY, lOK, TO AUGUST, 1909. 

[Source: Bolbttino dell' U.Ticio d?l Lavoro Some of the totals in this table do not agree with the 
totals in the following table; the figures are given as shown in the original r^'port.j 



Year and month. 



1905. 

July 

Augusi 

September 

October 

Novenib?; 

Decsniber 



Total, Gmonths. 
190G. 



JaTaarv 

Februa.-y 

March 

April 

May 

June 

July 

Austist 

September 

October 

November 

December 



Number of persons 
receiving bonefits. 



From 

trade 

ossoria- 

tioas. 



Total. . 

i9o; 



January 

February . . 

March 

April 

May 

June 

July 

Augusc 

September. 

OetobDr 

November. 
December.. 



Total. 



190S. 



lanujiry... 
February . . 
March..:.. 

Apiil 

May 

Juno 

July 

August 

S»ptein;>ei-, 
Otiober... 
NovsnibLT. 
l^ecambcr. 



Total. 



173 

203 
22-1' 

124 
119 
138 



9.^4 



122 

82 

42 

63 

44 

Gl 

134 

IGl 

10'. 

84 

11.^ 

92 



1.100 



2,019 



405 
135 
118 
130 
1G7 
156 
201 
205 
234 
159 
193 
191 



2,300 



From the 

Humani- 

tarifin 

Society. 



160 
18.5 
2<)3 
110 
107 
125 



896 



12-3 
81 
40 
4;^ 
41 

to 

1-24 

155 

1»7 

78 
10.> 



Number of days for 
which beiieSts 
wer.^ paid. 



By trade 
associa- 
tions. 



2,393 
2,9i)2 
3,491 
1,4(36 
1 , 304 
1.092 



By the 
Humani- 
tarian 
Societv. 



2.124 
2.576 
2. 989 
1,388 
1.122 
1.437 



Amount of bfneflts 
paid by trade as- 
sociations. I 



To all un- 
employed 
raemb'^rs. 



13.398 



11.636 



1,020 



74 


71 


78 


77 


63 


62 


198 


192 


131 


120 


133 


126 


163 


144 


357 


344 


374 


358 


2(i5 


242 


2S8 


274 


525 


498 



2. 508 



405 
135 

lis 

130 
155 
1.50 
201 
134 
216 
im 
150 
170 



, 1(0 



1.454 
908 
4.S6 

487 
497 

on 

1.493 
2.044 
1,463 
981 
1,804 
1,602 



1,418 

896 

388 

417 

388 

526 

1,361 

1.909 

1.354 

896 

1.490 

1.197 



5487 
761 
812 
315 
288 
407 



To mem- 
bers ri^ 
ceiving 
benefits 

from the 

Humani- 
t^irian 

Societv. 



S429 
644 

es8 

321 
243 

308 



.\mount 
of bent*- 
fitspaid 

by the 
H;miani- 

tarian 
Society. 



3.07 



2.693 



295 
156 
90 
119 
112 
129 
319 
444 
349 
232 
4S6 
^32 



295 
156 

90 
105 

99 
114 
305 
43d 
342 
223 
453 
25*3 



13.856 c 12.242 



3.113 



2.9-20 



858 
896 
744 
1.755 
1.527 
1,669 
1.973 
6.949 
8.109 
2,303 
2,468 
9,380 



822 


179 


990 


185 


732 


136 


l.{.i32 


419 


1,364 


342 


1,482 


3S9 


1.512 


406 


6.716 


1.096 


7.9-20 


1,147 


1.892 


553 


2.226 


552 


8.858 


2,549 



179 
185 
130 
412 
325 
ai7 
303 
1,045 
l,rt?4 
452 

im 

2,435 



38.631 



3tl,046 



7,953 



,4S'J 



5,227 


5.157 


2.030 


2,030 


1,334 


1.238 


1,501 


1.408 


2,506 


2.187 


1,775 


1.643 


2,471 


2.317 


2,720 


2.6% 


3,116 


2.731 


2,462 


2. (MO 


1,996 


1.587 


. 2,533 


2.100 


29,671 


27.094 



1,274 
508 

399 
294 
596 
369 
503 
035 
774 
5.55 
£13 
Ci.^2 



1,274 
508 
3iJ0 
284 
519 
347 
417 
031 
69^ 
417 
402 
510 



.022 i o.sas 



Total 

amount 

paid to 

persons 

receiving 

b neiiis 

bo'l" from 

trid ' as- 

sociationi 

and thi» 

Humara- 

tarian 

Society. 



$174 
229 
275 
128 
105 
133 



9B03 

873 
963 
44<9 
34S 

:oi 



1.044 



3.737 



127 

81 

36 

38 

37 

49 

125 

173 

120 

86 

140 

107 



422 

237 
126 
143 
136 
163 
400 
G12 
4ti8 
30J 

«wsf 

4O0 



1.125 



4.045 



< i 
S5 
69 
155 
130 
136 
137 
635 
756 
175 
206 
848 



256 

270 

205 

567 

455 

433 

£00 

1.680 

1,850 

627 

712 

3.283 



3.403 



10. S.^ 



4.^ 
l& 
117 
118 
191 
150 
209 
237 
243 
1S4 
151 



1,768 
097 
477 
402 
710 
437 
626 
838 
M2 
601 
55S 
700 



2,482 



8.800 



o This total is not the correct sum of the items; the tgures are given as shown in the original report. 



1930 



REPORT OF THE COMMISSIONER OF LABOR. 



UNEMPLOYMENT RELIEF BY THE HUMANITARIAN SOCIETY AND THE TRADE 
ASSOCIATIONS OF MILAN, BY MONTHS, JULY, im,, TO AUGUST, llWi^ConoludccL 



Year and month. 



1909. 

January 

February 

March 

April 

May 

June 

July 

'August 

September . . . . 

October 

November.... 
December 

Total... 



Number of persons 
receiving benefits. 



From 
trade 
associa- 
tions. 



113 
118 
120 
147 
253 
178 
371 
177 
182 
200 
199 
155 



2,213 



From the 
Humani- 
tarian 
Society. 



113 
118 
118 
146 
252 
175 
367 
175 
169 
185 
172 
148 



Number of days for 
which benefits 
were paid. 



A mount of benefits 
paid by trade as- 
sociations. 



By trade 
associa- 
tions. 



2,138 



1,663 
1,358 
1,448 
1,678 
3,506 
2,291 
3,961 
2,516 
2,7% 
2,118 
2,137 
1,285 



26,757 



By the 
Humani- 
tarian 
Society. 



1,663 
1,358 
1,406 
1,631 
3,382 
2,212 
3,835 
2,354 
2,296 
1,859 
1,826 
1.108 



24,930 



To aU un- 
employed 
members. 



315 
305 
325 
353 
729 
609 
1,104 
948 
969 
714 
683 
333 



To mem- 
bers re- 
ceiving 
benefits 

from the 

Humani- 
tarian 

Society. 



315 
305 
319 
348 
715 
558 
1,078 
926 
860 
629 
615 
291 



A mount 
of bene- 
fits paid 
by the 
Humani- 
tarian 
Society. 



145 
127 
138 
159 
321 
208 
347 
222 
221 
189 
173 
113 



7,387 



6,959 



2,363 



Total 
amount 
paid to 
persons 
receiving 
?)enefits 
lx)th from 
trade as- 
sociations 
and the 
Humani- 
tarian 
Society. 



400 

432 

457 

507 

1,036 

76C 

1.42.'5 

1, 148 

1,081 

818 

788 

404 



9,323 



XTNEMPLOYMENT BENEFITS, BY TKADE ASSOCIATIONS. 

In the tables heretofore given the membership of all the afliliated 
organizations was taken as a whole. The importance of the question 
of dependence of employment upon the trade calls for additional 
information. Data concerning the num])er of cases of relief, the 
number of days for which benefits were paid, and the amount of 
benefits paid are shown for the years 1906 to 1908 separately for each 
labor organization affiliated with this unemployment insurance sys- 
tem. For purposes of obtaining percentages, the mean between the 
membership of each union in January and in December has been 
used for 1906 and 1907. As the average membership for the year 
was available for 1908, it has been used in preference to the mean 
membership. 

In some instances the number of cases of relief seems large, even 
exceeding the mean membership in one occupation in 1907. This 
shows that some members received benefits more than once durinsr 
the year. In 1906 the number of cases of relief to printers was 36.1 
per cent of the mean membership, and for the compositors the per- 
centage was 29.5. In 1907 the number of cases of benefits to glaa^ 
polishers and workers in white glass was 192.6 per cent of the me^n 
membership. The next highest percentage, 89.6, was for chisel^rs. 
In 1908 the liighest percentage, 35.4, was for metal forgers. The 
compositors, printers, and lithographers show comparai lively high 
percentages for each of the three years. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1931 

UNEMPLOYMENT RELIEF BY THE HUMANITARIAN SOCIETY AND THE TR\DB 
ASSOCIATIONS OF MILAN, BY TRADE ASSOCIATIONS, 1906, 1907, AND 1908. 

^^^I^V 5°"f"*°^ ^^"' Uffieio^^el Lavoro, April, 1907, May, 1908, and April. 1909. Some of the totals in 
otigut^re^rL] ^^^ ^ ^^^ ^ ^^^ preceding table. The fl^es are given LshS^iTtS 



Trade associations. 



1906. 



Bronze workers 

Chiselers 

Compositors 

Blacksmiths 

Metal casters 

Printers 

Instrument makers 

Bookbinders(&) 

Lithographers 

Ironworkers 

Goldsmiths 

Mechanics 

Polishers and platers 

Workers in leather 

Newspaper dealers and 
distributers 

Dyers 

Metal turners 

Office employees 

Women in printing in- 
dustry 

Ribbon makers 

Workers in trimmings 

Type foimders 

Hat makers 

Glassworkers 

Basket makers 

Typographical union 

Bookbinders (*>) 

Metal cutters 

Brasiers 

Melal forgers 

Saddlers 

Pharmaceutical employees 

Workers in knit goods 

Gilders 

Lace workers 

Upholsterers 

Horseshoers 



Mem- 
ber- 
ship. 

(«) 



Cases of relief by- 



Days for which benefits 
were paid by — 



Trade asso- 
ciations. 



Total. 



57 

66 
1,300 

54 
900 
977 

12 
323 
463 

70 
140 
108 
205 

82 



Num- 
ber 



3 
383 



26 
353 



108 

2e5 

1,075 

522 



166 

310 

18 

167 

75 

74 

78 

315 

120 

14 

31 

55 

150 

102 

150 

116 

30 

61 

31 



8,790 



14 
70 
1 
2 
7 
6 
15 



Per 
cent 
of 
mem- 
ber- 
ship. 



4.5 
29.5 



2.9 
36.1 



20 
42 
19 

6 
5 
1 
17 
6 



52 
5 



37 

7 



1.100 



4.3 
15.1 
1.4 
1.4 
6.5 
2.9 
18.3 



Hu- 

man- 

ita- 

rian 

Soci- 
ety. 



3 
370 



26 
323 



14 
70 
1 
2 
7 
6 
15 



Trade associa- 
tions. 



Num- 
ber. 



17 
4,965 



156 
4,696 



7.5 
3.9 
3.6 

3.6 
1.6 
5.6 
10.2 
8.0 



16.5 
4.2 



24.7 
6.9 



10.0 



12.5 



20 
54 
19 

6 
6 
1 

17 
6 



50 
5 



37 

7 



cl,055 



144 

1,080 

6 

18 

119 

43 

126 



Aver- 
age 
per 

mem- 
ber. 



Aver 
age 
per 
bene- 
fici- 
ary. 



0.3 
3.8 



.2 

4.8 



184 
354 
496 

53 
52 
13 
147 
48 



662 
51 



302 
104 



20 



.4 
2.3 

.1 

.1 
1.1 

.2 
L5 



5.7 
13.0 



6.0 
13.3 



10.3 
15.4 

e.o 

9.0 

17.0 

7.2 

8.4 



Hu- 
mani- 
tarian 
Soci- 
ety. 



Amount of benefits paid 
by- *^ 



Trade 
associ- 
ations. 



Hu- 
mani- 
tarian 
Soci- 
ety. 



17 
4,503 



156 
4,040 



144 

1,080 

6 

18 

119 

43 

126 



$4.92 
1,331.18 



TotaL 



SI. 64 S6.56 
409.58' 1,740.76 



38.501 
770. 68i 



15.061 



.7; 9.2 

.3 8.4 

LO' 26.1 



.3 
.2 
.7 
.9 
.6 



8.8 
10 4 
13.0 

8.6 

.8 



2.1 
.4 



2.0 
1.0 



.7 



13,856| 



1.6 



12.7 
10.2 



8.2 
14.9 



184 
345 
496 

53 

52 

13 

147 

48 



644 
51 



302 

104 



37.64: 

208.44! 

1.16| 

5.21! 

16.28| 
8.30 

29.381 



S3 &6 



348.57] 1,119.25 



14.29 

104.22 

.58 

1.74 

10.87 

4.15 

1L78 



41.40 

74.80 

106.92 

4.32 
9.98 
2.70 
34.47 
2.70 



101.80 
4.92 



72.86 
10.03 



20 



1.93 



12.6^12,7112,920.52 



17.95 
32.81 
47.87 

4.32 
5.02 
L26 
14.18 
1.35 



5L93 

312. 66 

1.74 

6.95 

27.15 

12.45 

41.16 



31. 49 
4.92 



29.14 
10.04 



1.93 



1.124.76 



59.35 
107.61 
154.79 

8.64 
15.00 

3.96 
48.65 

4.05 



133.29 
9.84 



102.00 
20.07 



3.86 



4,045.28 



h ?hi \^ r"^ 1907 the mean membership is given; for 1908 the average for the year is used. 
The two hues for bookbmders represent two different organizations ^^ 

r.J}^ * ,^ ^ duplication of 29 cases, due to the payment of benefits by three different organizations of 
£i thToriSnai r^portf'^'''- ^ ^""^^ ^ ""^^ '^^ "^""^^ '"^ °' '^^ '^^'' ^^^ ^^^ are /vSS shot, n 

d Including a duplication of 469 days due to benefits being paid by the typographical union the com- 
positors' union, and the printers' union to the same persons. «*P^«-ai union, me com- 



1932 



REPORT OF THE COMMISSIONER OF LABOR. 



UNEMPLOYMENT RELIEF BY THE HUMANITARL\N SOCIETY AND THE TRADl 
ASSOCIATIONS OF MILAN, BY TRADE ASSOCIATIONS, 1906, 1907, AND 1908-Continued. 



Trade associations. 



1907. 



Bronze workers 

Chiselers 

Compositors 

Blacksmiths 

Metal casters , 

Printers 

Bookbinders(i>) 

Litliographers 

Ironworkers 

Goldsmiths 

Mechanics 

Polishers and platers 

Workers in leather 

Newspaper dealers and 
distributers 

Dyers 

Metal turners 

Office employees 

Women In printing in- 
dustry 

Ribbon makers 

Workers in trimmings 

Type founders 

Hat makers 

Glassworkers 

Basket makers 

Typographical union 

Bookbinders^') 

Metal cutters.. 

Brasiers 

Metal forgers 

Saddlers 

Chemical workers 

Workers in knit goods 

Gilders 

Upholsterers 

Gmss decorators 

Employees of cooperative 
societies 

Horseshoers 

Comb makers 

Photo - engravers 

Loom turners , 

Glove makers 

Glass polishers 

Workers in white glass 

Soap and perfume makers. 

Helpers in printing shoi)S. 

Stereotypers 



Total. 



Mem- 
ber- 
ship. 
(«) 



Cases of relief by- 



Trade asso- 
ciations. 



Num- 
ber. 



182 

77 

1,450 

35 

800 

1,015 

514 

546 

150 

120 

103 

208 

78 

111 
344 

858 
5991 

325' 

279| 

136| 

191 

99 

133 

88 

325| 

98 

14 

30 

70 

125 

123 

150 

162 

72' 

C38' 



121 

69 

576 



Per 
cent 
of 
mem- 
ber- 
ship. 



66.5 
89.6 
39.7 



79 

4(8 

31 

147 

5 

5 

7 

21 

9 

2 

6 

186 

20 

20 

109 

2 

9 

15 

3 



50 
12 



2 

2 

27 



C193 
100 
C40 
C80 

C290 

C169 
C30 

C200 
C72 
c88| 
C74 



1 
199 



443 



9.9 

46.1 

6.0 

2o.9 

3.3 

4.2 

6.8 

10.1 

11.5 

1.8 

1.7 

21.7 

3.3 

6.2 
39.1 

1.5 

4.7 
15.2 

2.3 



15.4 
12.2 



2.9 

1.6 

22.0 



dl.3 
d68.& 



2,649 



<n92.6 



d2.3 



Hu- 
man- 
ita- 
rian 
Soci- 
ety. 



Days for which benefits 
were p^id by- 



Trade associa- 
tions. 



Num- 
ber. 



121 1,987 

69 1,116 

532 6,716 



79 

399 

31 



965 
5,970 
248 
146; 2,036 

5 



21 
9 



84 
71 
90 
204 
65 



2' 72 

6l 67 

186j 1,587 

19 452 



20 

109 

2 

9 

15 
3 



49 
12 



2 

2 

27 



1 
199 



226 

585 

44 

56 

318 

29 



817 
117 



11 

54 

151 



18 



24 
2,997 



44311,430 



24 



f2, 533 38, 631 



Aver- 
age 
per 

mem- 
ber. 



10.9 

14. f> 

4.6 



1.2 

6.9 
.5 

3.7 
.6 
.6 
.9 

1.0 
.8 

.6 

.2 

1.8 

.8 



2.1 
.3 
.3 

3-2 



Aver- 
age 
per 
bene- 
fici- 
ary. 



16.4 
16.2 
11.7 



12.2 

12.8 

8.0 

13.9 

16.8 

14.2 

12.9 

9.7 

7.2 

36.0 

11.2 

8.5 

22. 



Hu- 
mani- 
tarian 
Soci- 
ety. 



1,987 
1,116 
5,869 



Amount of benefits paid 
by- 



Trade 
as.soci- 
ations. 



S565.49 

321.93 

1,532.5*1 



2.5 
1.2 



.2 

.4 

1.2 



1 



d.3 
dlO.3 



d49.7 
""d.3 



11. 3i 
6.4 

22.0 
6.2 

21.2] 
9.7 



16.3 
9.8 



6.6 

27.0 

6. 



965 

4,717 

248 

2,024 

84 

71 

90 

204 

65 

72 

67 

1,587 

397 

226 

685 

44 

66 

318 

29 



■ 



779 
117 



11 

64 

151 



18. Oi 



18 



24.0- 
16.1 



25.8 



12.0) 



24 
2,997 



11,430 
24 



14.6736,426 



Hu- 
mani- 
tarian 
Soci- 
ety. 



Total. 



S191.70 J757.19 
107. f9 429. 63 
536.06 2,0(.8.63 



258.43 

1,011.98 

67.10 

614. 63 

16.21 

8.5U 

17.37 

39.37 

14. 07 

13.90 

15.13 

423.91 

91.19 

20. 5o 
123. 82 

8.49 
16. 35 
62.79 

6. GUI 



88.51 

434.55 

24. Wl 

195. 90 

8.11 

6. 8.'> 

8.68 

19.69 

6.27 

6.94 

6.46 

152. 6« 

38.31 

20.46 

66.06 

4.25 

6. OH 

20.84 

2.80 



103.91 
11.87 



1.93 
11.00 
20.26 



2.61) 



3.24 
817.84 



1,372.71 



4.0& 



7,489.49 



36.93 
11.29 



Loal 

6.21 

14.481 



L22 



1.16 
289.21 



1,103.00 
"2." 32 



346.94 

1,446.53 

91.10 

710.51 

24. as 

15.44 
26. Of 
69.06 
20.94 

20.84 

21.69 

676.59 

129.50 

41.01 
179.87 
12.74 
22.43 
73.63 
8.40 



140.84 
23.16 



2.99 
16.21 
34.74 



3.83 



4.40 

1,107.05 



2,475.71 
""6.'37 



3,408.7510,898.24 



a For 1906 and 1907 the mean membership is given; for 1908 the average for the year is used. 

^ The two lines for lx>okbinders represent two different organizations. 

c Membership at end of year. 

d Based on membership at end of year. 

e Including a duplication of 25 cases due to benefits being paid by two societies to the same persons. 

/ Including a duplication of 380 days due to benefits being paid by two societies to the same persons. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1933 

UNEMPLOYMENT RELIEF BY THE HUMANITARIAN SOCIETY AND THE TR\DE 

ASSOCIATIONS OF MILAN, BY TRADE ASSOCIATIONS, 1906. 1907, AND 1908-Concluded. 



Trade associations. 



1908. 

Printing trades: 

Compositors 

Printers 

Bookbinders ( c) 

Lithographers 

Women m the print- 
ing industry 

Stereotj'pers 

Photo-engravers 

Typefounders 

Newspaper emplovees 

Printing-shop helpers. 

Printers' Institute 

Bookbinders (c) 

Metallurgy: 

Bronze workers 

Blacksmiths 

Metal founders 

Ironworkers 

Polishers and platers. 

Metal turners 

Brasiers 

Metal forgers 

Stone turners 

Metal boaters 

Industries of precision: 

Chiselers 

Workers in fine me- 
chanical work 

Metal cutters 

Gold))eaters 

Jewelers 

Textiles: 

Weavers 

• Ribbon makers 

Trimmings makers. . . 

• Dyers and stami)ers . . 
Upholsterers 

Glass: 

Glassworkers 

Glass fitters 

Glass decorators 

Leather: 

Workers in leather. . . . 

Glove makers 

Saddlers 

Chemical industry: 

Chemical workers 

Soap and perfumery 

workers 

Various industries: 

Hat makers 

Basket makers 

Comb makers 

Gilders and vamishers 

Paper hangers 

Carriage makers 

Ofiice employees, etc.: 

Employees' union 

Commercial employ- 
ees , 

Employees of coop- 
erative stores , 



Mem- 
ber- 
ship. 
(«) 



Cases of relief by- 



Total. 



Trade asso- 
ciations. 



Num- 
ber. 



1,484 

1,051 

616 

644 

415 

72 

63 

175 

122 

% 

320 

120 

237 

210 

650 

390 

284 

602 

24 

79 

267 

85 



87 

70 

17 

60 

111 

1,130 
402 
2191 

424 

70 

250 

1481 

38 

82 
105 
103 

160 

70 

131 

90; 

a& 

250 

12i 

6OI 

487 

160 

199 



Per 
cent 

of 

mem 

ber- 

ship. 



238 

200 

31 

92 

64 



24 



3 

62 
10 

49 



81 
9 



16.04 

19.03 

6.02 

16.91 

13.01 



Hu- 
mao- 
ita- 
rian 
Soci 
ety. 



Days for which benefits 
were paid by— 



13.71 



3.13 

19.38 

8.33 

20.68 



14.73 
2. 31 
36J 12.68 
33! 6.57 



28 35.44 
56, 20.60 



18 



(*) 
(*) 
(6) 

(*) 

(*) 
(ft) 

(6) 
(») 

(^) 

(ft) 

(ft) 
(ft) 
(ft) 
(ft) 
(ft) 

(ft) 



20.69 (6) 



(ft) 
(ft) 
(ft) 



.90 



34 3.00 



11 

4 

4& 



2.74 

1.83 

11.56 



9 



12 

12 

2 



3.60 

.68 



(ft) 
(ft) 
(ft) 
(ft) 
(ft) 

(b) 
(ft) 



14.63 (6) 

11.43 (ft) 

1.94 (6) 



8 6.33 



15 



8 



12,64»: 1,20a 



1L45 



n.54 

.40 

3.23 



L85 



4.02 



9.54 



(ft) 
(ft) 

(ft) 

(ft) 

<^) 
(ft) 

(ft) 

(ft) 

(ft) 



Trad^ associa- 
tions. 



Num 
ber. 



9,929 

4,735 

968 

3,304 

1,321 



386 



Aver- 
age 
per 

mem- 
ber 



65 
833 

50i 

376 



2.081 

95 

391 

750 



138 
353 



222 



86 

764 
92 
49 

747 



246 

12 



214 

299 

66 

46 



600 



133 
18 
30 



294 



172 



6.6 
4.5 
L9 
6.1 

3.2 



2.2 



Aver- 
age 
per 

bene- 
fici- 
ary. 



34.9 

21.5 
3L2 
36.9 

24.5 



.7 

2.6 

.4 

L6 



3.8 

.2 

1.4 

1.6 



1.7 
L3 



10.0 



Hu- 
mani- 
tarian 
Soci- 
ety. 



Amount of benefits paid 
by- 



Trade 
associ- 
ations. 



8,327 2,037.80 

4,3121 806.66 

9681 234.08 

2,954; 785.32 



Hu- 
mani- 
tarian 
Soci- 
ety. 



TotaL 



1,321 141.14 



73L55 2,769.-35 

388. 50j 1,195.16 

94. 091 34& 17 

285.06] 1,07a 38 

j 

127.48 268. C2 



21. 

13.4 
6.0 

7.7 



I 



i^ 



385 92. m 37.07; 129.23 



23.3 

10.6 
10.9 
22.7 



2.6 



.7 

.2 

.2 

L8 



4.9 
6.4 



65j 6.27 

833 166.07 

50; 7. 34 

I 

370! 103.74 



6.27 

42.78, 

5.40 

36.61 



12.54 

208.85 

12.74 

139.35 



1,885 647.24 

95 18. 33 

391 ! 75.46 

750; 192. 03 



211.98 

9.17 

37.73 

70.64 



138 38. 98| 
353 101. 62 



12.3 



36.0 

22.5 

8.4 
12.3 
15.2 



1.0 27.2 
12.0 



2.6 

2.8 

.6 

.3 



3.8 



6.1 
"'."2 



.9 



(ft) 29,713 2.3 



222- 



36 

764 
92 
49 

747 



13.32 
34.06 



246 
12 



33.58, 



10.42 

181. 18 

10. OS" 

9.55 

219.33 



2L43 



3.48 

73.731 

8.44 

4.73 

7218 



859.22 

27.50 

113. 19 

262-61 



62.30 
135. C8 



17.81 
24. 9 
33.0 

6.8 



70.931 

2.31; 



23.06 
1.16 



33.3 



44.3 

18.0 
7.5 



32.7 



214 

299 
66 

46 



500 



133 

18 
30 



294 



21.5: 



172 



5S.58 
49.22 
19.11 

8.11 



55.01 



13.90 

264.91 
24.52 
14.28 

29L51 



93.99 
3.47 



64.94 



20.84 

24.39 

6.37 

4.44 



28.81 



25.671 1Z83 
2. 41 1. 22 
S.m 2.80 



62.63 28.37 



33.19 



16.60 



79.42 
73.61 
26.48 

12.66 



93.75 



38.50 
3.63 
8.69 



9a 90 



49.79 



:i' 



22. 5| 27,136 6,347. 18|2, 486. 68j 8,832.86 



a For 1906 and 1907 the mean membership is given; for 1908 the average for the j-ear is used 
» X^ot rex)oi ted. c The two lines for bookbinders represent different organisations. 



1934 



KEPOET OF THE COMMISSIONER OF LABOR. 



PROPOSED GOVERNMENTAL UNEMPLOYMENT INSTmANCE. 



On June 16, 1910, a bill was introduced in the Chamber cf Deputies 
by the minister of the interior for the organization of a system of state 
insurance against unemployment, on the Ghent plan. The bill pro- 
posed only the first steps in that direction, through an appropriation 
of 100,000 lire ($19,300) to be used in subsidizing workmen's unem- 
ployment insurance organizations. 

In a comprehensive report accompanying this bill the general 
problem of unemplo3Tnent was discussed and the various methods of 
rehef suggested were compared. 

The bill, which is very brief, proposes the appropriation of 100,000 
lire ($19,300) for the fiscal year 1910-11, to be administered by the 
minister of agriculture, industry, and commerce for the purpose of 
granting subsidies to labor organizations which grant unemployment 
relief. Only the following few requirements are specified in tlie bill: 
(1) That the unemployment relief granted by these organizations bo 
based entirely, or at least partly, upon the principle of- saving, i. e., 
that the organizations should not be purely charitable and should 
receive a part or the whole of their revenues from meml)ersliip con- 
tributions. (2) That a definite length of membership be required 
before relief is granted, so that workmen would not join these organi- 
zations only at the time when relief is needed. (3) That the sub- 
sidized persons be able-bodied workmen. This, according to tho 
memorandum accompanying the bill, is intended to exclude the sick, 
the injured, the aged, the invalid, and women after childbirth, for 
all of which groups special provision either exists alrea<ly or is con- 
templated, and should be made upon very different principles. (4) 
That only persons unemployed against their will be permitted to get 
relief; this is to exclude: Strikers, as the State can not grant strike 
benefits under the principle of state neutrality in industrial conflicts; 
persons voluntarily leaving their employment for any reasons what- 
soever; shirkers, who for any reason do not care to make the neces- 
sary effort to obtain or retain employment, or persons discharged for 
some fault. (5) Finally, that the state subsidy be not granted to 
persons in seasonal trades during the period of such seasonal unem- 
ployment. 

The details of administration of this act are not prescribed in the 
bill, but left to an administrative regulation to be issued by royal 
decree, after consultation with the superior coimcil of labor and the 
council of providence. 

The bill was passed by the Chamber of Deputies ahnost without 
discussion. In the Senjite it was referred to the central committee, 
which brought in an unfav^orable report on July 7, 1910. (") 

a Bollettino dell' Ufficio del Lavoro, Vol. XV, January, lUll. 



'4 
\ 



CHAPTER VII. — workmen's INSUKANCE IN ITALY. 1935 

RAILROAD PENSION AND MUTUAL AID INSTITUTIONS. 

INTaODtJCTION. 

The most important example of compulsory old-age and invalidity 
msurance in Italy is furnished by the State Raiboad Employees' 
Pension and Aid System (/Z servizio delle pensioni e del sussedi), now 
regidated by the law of July 9, 1908, and the royal decree of April 22, 
1909, codifying this law, together with various preceding decrees- 
But though the legislation above mentioned is of recent origin, 
various provisions and institutions for pensions and mutual aid have 
existed in the Italian railroads for nearly 50 years. The present sys- 
tem is a direct outgrowth of these earlier beginnings. It follows these 
to a very great extent, and can not be understood without a historical 
account of their origin and development. 

The growth of the Italian railroad system did not assume any con- 
siderable proportion until toward the end of the eighties, as appears 
from the following statement: 

Miles. 
December 31, 1871 ^ 3 9^0 

December 31, 1880 ] 5' 4x4 

December 31, 1890 s' 170 

December 31, 1900 9' gyo 

June 30, 1907 ............[] lo! 711 

Since 1885 a very large proportion of the Italian railroad mileage 
has been owned by the State, as is shown by the following data. 
referring to June 30, 1907: 

Railroads owned by — uoss 

The State g 054 

Private companies 2 352 

Jointly by the State and private companies 105 

Total X0,711 

While the Italian railroad mileage equaled only 4.5 per cent of the 
American system on the same date, the personnel of the Italian 
service is larger than the above proportion of mileage would indicate. 
Unfortunately, for the entu-e Italian railroad system, no data later 
than for 1903 are available, but for the state-operated railroads, 
the number of employees on June 30, 1906, was 118,815, and on June 
30, 1907, 134,611, so that the total number of employees must exceed 
150,000. The total number of emplo^^ees for 1891 to 1903, and the 
total and average remuneration, including the entire contribution 
by the railroads for the benefit of the employees, are shown in the 
table following: 

For the year 1903 detailed information is given for the three main 
railroad systems and for otlier railroads existing in that year. This 
shov/s that three large railroad systems, which included in 1903 
7,960 miles, or less than 75 per cent, claimed over 90 per cent of the 



1936 



EEPORT OF THE COMMISSIOl^ ER OF LABOR. 



employees. The salaries were considerably higher on these three 
roads than for the smaller roads, and the total contributions for the 
benefit of the employees of the smaller roads were very small, since 
these smaller roads do not have any organized provident institutions. 

NUMBER OF EMPLOYEES, SALARIES, AND CONTRIBUTIONS OF RAILROADS TO 

BENEFIT INSTITUTIONS, 1891 TO 1903. 

[Source: Annuario Statistico Italiano, 1905-1907. Vol. II.] 



Year. 



Number 
of em- 
ployees. 



1891. 
1892. 
1893. 
1894. 
1895. 
1890. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903- 



Saliwies paid. 



Amount. 



Mediterranean rail- 
road 

Adriatic railroad 

Sicilian railroad 



Total.. 
All other. 



98,180 

96,573 

96,873 

96,924 

93,550 

96,801 

101,065 

101,110 

101,871 

ia5,372 

108,690 

111,271 



52,500 

44,437 

6,460 



Aver- 
age per 

em- 
ployee. 



Contributions of railroads 
to benefit institutions. 



Total salaries and 
contril lutions to 
benefit institu- 
tions. 



$•22,262,387 
21,845,473 
21,907,168 
22,054,087 
22,454,024 
22,816,100 
23, 529, 483 
23,452,256 
24,020,649 
24,726,268 
25,522,854 
26,548,146 



13,338,735 

11,06?, 298 
1,432,119 



103,397 
9,297 



$226.75 
226.21 
226.14 
227.54 
240.02 
235. 70 
232.81 
231. 95 
235.79 
234.66 
234. 82 
238.59 



254. 07 
249. 39 

221. 69 



Amoimt. 



25,853,152 
1,710,631 



Grand total, 1903 . . . 



112,694 



27,563,783 



$813,468 
833,544 
839.152 
828,713 
849. .'iS? 
839, 318 
872,808 
866,735 
86.5,695 

1,007.209 
99<1,422 

1,340,459 



617,048 
715,;i09 

78,682 



Per 
cent of 
salary. 



Aver- 
age per 

em- 
ployee. 



2.50.04 
184.00 



244. 59 



1,411.039 

40,582 



3.65 
3.82 
3.83 
3.76 
3.78 
3.68 
3.71 
3.69 
3.60 
4.07 
3.90 
5.05 



4.63 
6.45 
5.49 



1,451,621 



5.46 
2.37 



$8.29 
8.63 
8.66 
8.55 
9.08 
8.67 
8.64 
8.57 
8.50 
9.56 
9.17 

12.05 



11.75 
16.10 
12.18 



Amount. 



$23,075,865 
22,679,017 
22,746,320 
2^2, 882, 800 
23,303,561 
2:3,655,418 
24,402,291 
24,318,991 
24,886,344 
25,733,477 
26,519,276 
27,888,605 



13,965,783 

11,797,607 

1,510,801 



Aver- 
age per 

em- 
ployee. 



13.65 
4.37 



5.27 



12.88 



27,264,191 
1,751,213 



29,015, <04 



$235. 04 
234.84 
234.80 
236 09 
249 10 
244. 37 
241.45 
240 52 
244.29 
244.22 
243.99 
25a 64 



266. 82 
265.49 
233. 87 



263.68 
188.36 



257.47 



Since 1905 the Itahan Government has operated not only all the 
railroads it owns, but also some which are the property of private 
owners. Of the entire railroad net of 10,711 miles on June 30, 1907, 
8,699 miles, or over four-fifths, were operated by the State and only 
2,012 miles by private companies. 

ORGANIZATION OF PROVIDENT INSTITUTIONS. 

In 1885, before the nationalization of most Itahan railroads took 
place, there existed in Italy four large railroad systems: The Upper 
Itahan (Ferrovie Alta Italia), the Soutliern {Ferrovie Meridionali), 
the Roman (Ferrovie Eomane), and the Calabrian SiciUan {Fen^ovie 
(Mlahro-Sicuh) . 



t 



I 



t 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1937 

Within the 20 years, 1860 to 1880, pension funds and mutual aid 
associations were organized for each one of these four railroad systems 

as follows : 

DATE OF ORGANIZATION OF RAILROAD PENSION FUNDS AND MUTUAL AID 

SOCIETIES. 

{Furnislxed by the director of the Office of Social Insurance, Rome.] 



Pension funds. 



Alta Italia. . . . 
Meridionali. . . 

Romane 

C^abro-Sicule 



Date of 
organization. 



Mutual aid societies. 



Jan. 1,1862 

July 1,1869 

Jan. 1,1871 

Jan. 1,1880 



Meridionali... 
Alta Italia. . .. 

Romane 

Calabro-Sicule 



Date of 
organization. 



July 1,1 W9 

Jan. 1,1870 

Jan. 1,1879 

Feb. 1,1880 



While there were certain differences between the respective funds 
of the different railroads, such as relating to the amount of contribu- 
tions, pensions, subsidies, conditions of membership, etc., yet these 
two groups of funds belonged to two well-defined types. The purpose 
of the pension funds w^as to grant pensions (annuities) to the em- 
ployees for old-age and ordinary invalidity, exceptional (increased) 
pensions for invaUdity due to some injury sustained in service, pen- 
sions to widows and orphans, and lump-sum benefits to the members 
or their families in case all the requirements for pensions were not 
complied with. 

The mutual aid society rather belonged to the type of sick benefit 
funds. Their purpose included medical care and treatment, cost of 
medicines and appHances, sick benefits, funeral benefits, but also 
invaUdity pensions in case of complete disability, and small lump- 
sum death benefits. The two different forms of mutual provision 
were shaped to the needs of the two classes of employees. The 
liigher grades of employees held membership in the pension funds, 
while those of the lower grades were inscribed in the mutual aid 
societies, in which both contributions and benefits were lower, but 
which also provided a system of sick insurance, for which a greater 
need is felt among the lower grades of employees. 

The funds of the Upper Italian Railway presented an important 
exception to the rule in that most of its employees belonged both to 
the pension fund and to the mutual benefit society. 

In all funds and societies membership was compulsor3" for all per- 
manently employed, and all these funds and societies were subsidized 
by the railroad companies to a considerable extent. 

In August, 1875, the upper Italian railroad system, the largest of 
the four, was purchased by the Government, and as the movement 
for the government ownership of the railroads gained headway dur- 
ing the following 10 years, the Itahan Government acquired owner- 
ship of most Italian railroads by the law of April 27, 1885. The 
entire network of government railroads was divided into tliree sys- 



1938 



REPORT OF THE COMMISSIONS' ER OF LABOR. 



terns, the Mediterranean and the Adriatic systems on the mainland, 
and the Sicihan system on the island, and these three systems wer« 
leased for operation to three private corporations for 6() years with 
reserved right to cancel the leases after 20 years. 

REORGANIZATION OF PROVIDENT INSTITUTIONS. 

In accordance with thus reorganization of ( he railroads, a correspond- 
ing reorganization of the pension funds and benefit societies was 
thought necessary and was ordered by the law of April 27 1,885 (") 
which required a pension fund and a mutual benefit society for each 
of the three new operating companies, and uniform constitutions and 
by-laws for these funds and societies. The reorganization was not 
effected without some delay, provisional uniform constitutions going 
mto effect on January 1, 1890. The essential feature of both the 
pension and the mutual benefit funds was their mutual character 
combined with the absence of strict actuarial rules. The contribu- 
tions made by and for the many members were paid into a common 
fund, from wluch payments of pensions and benefits were made, and 
the amounts of pensions and benefits were dependent upon the length 
of service and the salary toward the end of t he service rather than the 
amounts paid m by the member. Under such circumstances diffi- 
culties were bound to arise as soon as obligations began to mature. 
Ihe balance sheets began to show large deficits and a law was 
passed by the ParUament and approved on August 15, 1897 which 
ordered a reorganization of the funds.f) This act ordered that the 
activity of the existing pension funds and mutual benefit societies be 
limited to persons in service on December 31, 1896, an.l that for 
employees entering the railroad service since January 1, 1897 new 
provident institutions be organized not later than January 1 'l898 
ay this act the Government was also ordered to introduce, within six 
months a bill mto Pariiament for the better regulation of the existing 
railroad pension funds and mutual benefit societies. 

Meanwhile, to counteract the effect of the deficits of the pension 
funds and the mutual benefit societies, the Government was forced to 
establish by this act a small surtax upon passenger and freight rates 
for tlie benefit of the funds, as follows: For through trains, 5 per cent 
upon passenger tickets for distances over 20 but under 30 kilometers 
(over 12.4 but under 18.6 miles), and 10 per cent for distances of 30 
kilometers (18.6 miles) and over, and for mixed and accommodation 
trains 1 per cent for all distances over 20 m iles, and for the freight 

" Raccolta Uffieiale delle Legsi c dei Decreti del E.^.no d' Italia im''^7l 
^ ^^Raocolta Uffieiale delle Leggi e dei Decreti de^Regno d'iklL 1897, vol. 3. 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1939 

rate a surcharge of 10 centesimi (1.9 cents) per ton for each loading 
or unloading. These provisions of the law were ordered to go kito 
effect three months after publication (August 26, 1897) for internal 
communication and commerce, and five months after publication for 
international communication and commerce, to remain in force only 
until December 31, 1898; but to be abolished after sLx months it 
within that time the Government should fail to introduce a bill for the 
regulation of the existing pension institutions. It was found neces- 
sary subsequently to extend the action of this special surtax by 
repeated enactments to March 31, 1900.(°) 

The law of March 29, 1900,0 which established definite legislation 
concerning the old as well as the new provident institutions, substi- 
tuted other more or less permanent sources of revenue for the coverinor 
of old deficits. The conditions of the act of 1897 were complied with'' 
and on March 29, 1900, the law creating the new provident institu- 
tions, establishmg certain new regulations for the existing pension 
funds and mutual benefit societies, and providing for new sources of 
revenue to cover old deficits, was finally approved by the Crown 

The mmister of public works was ordered to ascertain, witlun one 
year, the amounts of deficits of the pension funds and miitual benefit 
societies of the four large railroad systems on June 30, 1885, according 
to all obligations assumed and also the deficits of the existing three 
funds and societies on the date of the adoption of the new constitu- 
tions the old deficits to be made good by the State, while the new 
deficits were to be met by the operating societies according to the law 
of August 15, 1897. To meet these ohl deficits of June 30, 1885 the 
foUowmg new taxes were created by the law for the government 'raU- 
roads operated by the three corporations. An increase of the surtax 
upon fast freight rates from 13 to 16 per cent, and upon slow freight 

M ', Ton n ^- P"" ''°*- '^^^ *''-^ ^ "^^ ""-^^^^d t° ^« into «ff«ct on 
Alay 1 , 1 900 (for international trade five montlis later) . The proceeds 

were required to be deposited with the State Loan and Deposit Bank 
to be distributed among the existing funds and societies according 
to the same rules wliich were applicable to the redistribution of the 
assets of the old pension funds and mutual benefit societies amon- 
tlie new ones organized in 1885. " 

The new regulations for pension funds and mutual benefit societies 
will be discussed more fully in connection with a detailed analvsis 
of the constitutions. Briefly, they conferred the right to a pension 
a ^he age of 60 and after 30 years of me mbership for sedentary 

" Raccolta Uffieiale delle Leggi e dei De<rcti del Regno d' Italia 1898 vol <l 
3;p fois '•• ''''' '"'• -'' "■ ''''-' '"'•• '"''• ''''■ 2' P- ''''• >^M 1899 voi: 
^ 6^Raccolta Uffieiale delle Leggi e dei Docreti del Regno d' Italia, 1900, vol. 1. 



1940 



REPORT OF THE COMMISSIONER OF LABOR. 



occupations, and at the age of 55, after 25 years of membership, for 
active occupations; invalidity pensions after 10 years of membership, 
this qualification being waived in case of invaUdity due to injury; 
and regulated the pensions of widows and orphans. Concerning the 
mutual benefit societies, the main provisions which the law estab- 
lished were the prohibition of pensions to survivors of members and 
the prohibition of any sick benefits during the first five days of illness. 
The organization of a commission, including representatives of the 
Government, the railroads, and the members of these institutions, 
was ordered for the preparation of new constitutions, to be uniform 
for all pension funds and for all mutual benefit societies, this com- 
mission to determine the necessary revenues to correspond to the 
assumed obligations. The law also requiro<l that at the expiration 
of a period of the contract for operation of the railways a technical 
balance be struck and the ascertained amount of deficit be charged 
to the operating society. 

Kegulations for the new provident institutions form the main part 
of the law of March 29, 1900. Such institutions were ordered to be 
organized within six months after the promulgation of the law, to 
include all einployees who entered railway service after January 1, 
1897. The essential difference between the new provident inijtitu- 
tions and the old funds and societies is the introduction of the sys- 
tem of individual accounts. Two sections were organized in each 
provident institution, one corresponding to the pension fund and the 
other to the mutual benefit society. The membership in the first 
section was compulsory to employees receiving annual or monthly 
salaries; in the second section, to employees paid a daily wage. The 
sources of revenue — i. e., the contributions of the members and 
of the railroad companies and the subsidiar} sources — were practically 
the same for the two sections, but the main revenues were credited 
to individual accounts, which were to form the basis of the pensions 
or lump sum-benefits, wliile the other revenues were paid into a col- 
lective fund and were to be used for special increased pensions, etc. 
The second section, similar to the mutual benefit society, also renders 
medical and pharmaceutical service and grants sick benefits to its 
members. The constitutions of these provident institutions were 
approved by the royal decree of January 31, 1901. 

The constitutions of all these three sets of institutions were modi- 
fied several times during the last decade, though the modifications 
were slight. As the laws of 1897 and 11M)0, besides requiring the 
organization of the new provident institutions, also established cer- 
tain new conditions of administration for the old existmg institutions, 
namely, the participation of the members in the administration 
hitherto entirely left to the railroad companies, and also a certain 



CHAPTER VIL— WORKMEN'S INSURANCE IN ITALY. 1^41 

degree of governmental control, new constitutions embod>dn<. these 
changes were approved by the royal decree of August 2 10^^ 
th T. 1 ^T""^" operation of the railroads pix>ved ui;satisfactorv 
the Itahan Government decided to take advant^age of the twenty-^e^ 
dause m the lease, aiid the operation of the main raihx>ad sUt^^ 

Tl^'^'t '" '""V^ '"^'^ ^ conformance with the law olpS 
22, 190o ^ew constitutions embodying only minor changes we^ 
approved by royal decree of March 17, 1907, Vor the JZonfunZ 
ZlrByt^rlf-'^ as weU as for tl. neJ^J^^^l^ 

tlJV«?r t'^^^T'^^ "moreover, that in view of the consolidation of 
the railroads under the unified administration by the State the^ 
was no necessity for three separate institutions of'^each oite ^ 
gi^ups, and one week after the new constitutions were approved 7^ 
aw of March 24, 1907, ordered their consolidation into one i2s oo 
fund one mutual benefit society, and one provident i^tSon 
Constitutions of these three unified institutioL wei^ ap^ved T; 
the royal decree of May 23, 1907. approved by 

The entire sy stem was radicaUy changed by the law of July 9 1908 
which amied to reduce the differences of treatment of e^loSS 
of different groups. The law pr^cribed a unified systeHf L^ 
^omng, which was worked out in a codification of the kw^dth rnL 
of the provisions m the constitutions of the thi^ corolidX! 
mstitutions, published by royal decree of April 22,1^9. T^ 
^ ti^is law the three institutions ceased to exist on DeceX 31 
1908, and the new system was introduced on January 1, 190^ ' 

STATE RAILEOAD PENSION FUND. 

pn^dnliontfn'' " w'""* '"'P.'"'**''* "^ '^' thi^e because the 
Eu „f ft '*^°^'""^'^t'«'^ ^«« <^ioseW followed in ekbomting the 
deta s of the existmg pension system, in which the membership ?f «U 
the three mstitutions was merged. ^ 

The purpose and scope of the^pension fund was the grantin- of old- 
age and mvahd,t.v pensions to its members, pensions^to wilws and 

orphansofdeceasedmembers,lump-sum benefits tomembez^orSows 
ana orphans m cases in which a right to a pension had noTbern 
acquired, and in addition the fund assumed 'the adnlistrTt In of 
accident insurance in compliance with the general laws ^vcmii^ 
such insurance. t,"^frning 

The fund was specially designed for the employees of the state rail 
way system; within that system is included the altual operat n! f^r^ 
and the clerical force, but not the working force of the rEa^?!! "T 

Membership in the fund was restricted to such persons J S 
membership in one of the three pension funds on December 31 1896 



1942 



REPORT OF THE COMMISSIONER OF LABOR. 



including, as was explained above, mainly salaried em])loyees and 
such persons who were on that 'date members of a mutual benefit 
society and later became entitled to membership in the pension fund 
by promotion to a higher position. 

The pension fund took care of ordinary superannuation, as well as 
of ordinary invalidity at an early age, providing special benefits for 
invalidity due to occupational diseases or to miasmatic fevers; it 
granted pensions to survivors in case of death of either a member or a 
pensioner. 

Regular superannuation pensions were payable to members who 
retired from the service, either by their own request or by the decision 
of the administration, after attaining 60 years of age and after 30 
years of membership in the fund, in case of sedentary occupations, 
or after attaining 55 years of age and after 25 years of membership in 
case of so-called active occupations, whi<*h include in general the 
train service, yard service, and station service. Employees of either 
group may demand a pension at the age of 55 and after 25 years of 
membership, provided they have had 15 years of actual service. 

Invalidity pensions were payable at any age, when such invalidity 
had been established, provided it was preceded by 10 years of mem- 
bership in the fund. This condition was waived when invalidity was 
due to an injury or other lesion acquired through the service, or to 
some miasmatic fever, caught in consequence of the service in an 
infected locality. 

If members of 10 years standing were separated from the service by 
the railroad administration without any fault of their own, they may 
be permitted by the administration of the fund to retain their mem- 
bership in the fund, contributing according to the last salary, the rail- 
road making the regular 8 per cent contribution. In such cases 
families retain the same rights as if the person had been in the s(irvice. 

In addition to the pensions to members, pensions were paid to 
widows and children of deceased members or pensioners as explained 
below. 

BENEFITS. 

As was pointed out above, the chief characteristic of tliese pension 
funds was the absence of any strict dependence between a member's 
accumulated contributions and his pensions. 

Normal pensions, which may be termed ])lain superannuation pen- 
sions, were liquidated on a basis of 3 per cent of the accumulated 
earnings of the members from whom deductions were made, to which 
are added one-twelfth of each increase in salary during the time. 
The actual annual pension was equal to nine-tenths of this computed 
amount, with a minimum of 300 lire ($57.90) and a maximum of 
8,000 lire ($1,544). This, in case of a complete 25 years' membership, 



CHAPTER VII.— workmen's INSURANCE IN ITAiY. 1943 

would give a pension of over 75 per cent of the average annual salary 
In ca^e of premature invahdity due to some injury or disease received 
m the service, or to a miasmatic fever, the pension fund was even 
more hberal. In such cases the pension was computed on a basis of 
25year^of membership, no matter how long or short it actually was 
and for such purposes the last year's salary was assumed for all 
missing years. 

The amount of pensions to widows and orphans depended upon the 
amount of the pension which the deceased member was receiving, or 
to which he would have been entitled if he had left the service on the 
day of his death. 

The amounts of these pensions were proportionately very hi^h 
namely 50 per cent of the original pension if the widow alone^r- 
vived; 65 per cent if she had any mmor children; if in addition 
mmor children of the deceased by a previous marriage survived 
the 65 per cent was divided among all the survivors, giving the 
widow two shares, and not less than 25 per cent. The widow's 
pension was paid until remarriage, and the children's pension until 
they were of age, or in case of female children until marriage, if that 
took place before they became of age. 

If a member of the fund was forced to give up his position, either 
because of invalidity or of the abolition of his position before he had 
acquired the right to a pension, he received a benefit in the nature 
of one payment equal to 3 per cent of his total salary. A propor- 
tionate amount according to the pension regulations was granted to 
the widow and chddren of a deceased member who died before 
acquiring the right to a pension. If minor children, but no widow 
survived, they received 50 per cent of the computed amount divided 
equally among all those surviving or still entitled to a pension because 

1 \ Tr^^' ^^ ^""^^ ^^" ^^^^ ^^^^ remained he received 25 
per cent of the computed amount. 

Thus, with a few minor exceptions, the pension fund provided very 
SlSsTf tt^^^^^^^^^ -'-'''' ^^^ superannuation age anj 

on! rtVeMT-f ?' ^T'^"' '^' P'^^^"^ ^^^^^^ ^^« ^ contributory 
one (the contributions being very high as will appear in the following 

section) It seemed to be somewhat of a drawback that the peS 

nghts were los altogether by resignation or dismissal from he 

service, except m the cases of persons in the employ of raLaS 

subsequently acquired by the State, who lost their positiL at the t^ 

tlZn:^1Z^^^^ ^'^^ '''''' ^^' -^^ -^^^^ -^- --^-hip in 

wit^ft It ""^ ^^' r^^^ ^^ f P"^'^^^ ^^"^^"^^ ^^ resignation carried 
With It a correspondmg total loss to the widow and cWldren, while in 

67725°— VOL 2-11 29 



1944 



KEPOBT OF THE COMMISSIONER OF LABOR. 



i' 



ik»» 



case of dismissal the wife and minor children were treated .under the 
same rules as in case of death of the employee. 

While all invahdity, whether or not due to industrial accidents, 
gave the right to a pension, a certain number of the employees 
insured in the fund come under the provisions of the accident com- 
pensation law, and therefore special provisions were included in the 
constitution for the purpose of adjusting these two rights and prevent- 
ing double compensation for accidents. In general thesp provisions 
may be summarized as follows: That in so far as the railroad admin- 
istration had not otherwise provided for tlieir accident insurance, the 
pension fund acted as the agent of the railroad administration for 
payment of compensation ; of the two amounts, that due to him as a 
member of the pension fund and that due under the accident com- 
pensation law, the larger was paid to the injured employee or to his 
survivors, the distribution being made according to the provisions 
of the accident law; on the other hand the railroad administration 
was required to pay to the pension fund tlie amount of compensation 
due under the accident law. 

SOUIICES OF INCOME. 

All of the assets of the three pension funds were transferred to the 
State Railroad Pension Fund. The cunent revenues of the fund 
may be divided into three main groups: {a) The periodical contribu- 
tions of the members; (&) the periodical contributions of the railroad 
administration as an employer; and (c) a special source of income 
created by the law of March 29, 1900. The contributions paid by the 
private operating companies before the assumption of the railroad 
business by the Government were then made by the State, but as 
before from the operating accoimts. 

In addition, donations and legacies might be received by the fund, 
and the income from investments of the funds on hand were added 
to the revenue. 

Under the constitutions of January 1, 1890, for the three indi- 
vidual pension funds monthly deductions of 4.5 per cent were 
made from the salaries and other accessory payments made to the 
employees. By the constitution of 1902 these were increased to 
5.5 per cent on October 21, 1902. In case of an increase of the 
annual salary, one-twelfth of the increase was retained during the 
first month after the increase went into effect. In other words, 
the actual increase of the salary was retained for one month. 

If the salary was reduced because of sus])ension, leave, sickness, or 
transfer to a waiting list, the deductions were made as if no such 
decrease of salary had taken place. If the salary was entirely dis- 
continued for a tinae, the employee must make the deferred payments 
on return to the active service. 



. 



CHAPTER VU. WORKMEIS-^'S IXSUEANCE IN ITALY. 1945 

From January 1, 1890, until October 21, 1902, the railroad admin- 
istration paid to the pension fund 5 per cent, and since that date 8 
per cent, of the salaries- subject to the deductions, and in case of a 
promotion one-twelfth of the increase in the annual salary. 

In case of temporary reduction or discontinuance of the salary the 
administration met its obligations at the same time that the emploj^ee 
did. 

A special source of income was created for the fund by the law of 
March 29, 1900, act 3, in turning into the fund the proceeds of the 
sale of tickets of admission to raihoad stations. 

ADMINISTRATION. 

The pension fund was intrusted to an administrative committee 
of 12 members, of whom 6 were nominated by the state railroad 
administration and 3 were selected by the members in active 
service. Of these 9 members all but one of the administration's 
representatives must be employees in active service. The other 3 
members were required to be representatives of other governmental 
departments, one of the Ministry of Agriculture, Industry, and 
Commerce and the other two financial experts from the l^Iinistry 
of the Treasury. Several other high officials were mentioned as con- 
sultative members of the committee. 

The committee elected its own president, vice-president, and sec- 
retary, who were not to be the above-mentioned representatives of 
government departments. Various provisions were contained in the 
constitution concerning the investment of the funds and the auditing 
and reporting of the financial affairs. The entire cost of the admin- 
istration was assumed by the railroad administration. 

STATISTICS. 

MEMBERSHip.—The movement in the membership and the number 
of pensioners in all the three funds is shown in the following table. 
The rapid decline in the membership since 1897 is easily explained 
by the organization of the new provident institutes.^ But even 
before that the membersliip appeared to be decreasing, though, as 
was shown in the table on page 1936, the number of employees of 
the ItaUan railroads was growing. But it seems to have been the 
policy to increase the number of temporary appointees rather than 
of permanent employees. Thus while the number of permanent 
employees has actually decreased within the decade 1891 to 1901 
from 89,723 to 88,995, the number of temporary employees increased 
from 8,457 to 19,695. 



f 



1946 



KEPOET OF THE COMMISSIONER OF LABOR. 



With the practical closing of the pension funds to new members, the 
proportion of pensioners to members rapidly increased. In 1890 
there were 16.5 pensioners for each 100 members, and in 1907, 67.5 
pensioners per 100. 

AVERAGE ANNUAL NUMBER OF MEMBERS AND PENSIONERS IN THE THREE 

RAILROAD PENSION FUNDS. 

[Ssurce: Ferrovie dello Stato, Rapporto sulle OperazionI e suite Stato Economico delle Cessate Casse 

Pensioni per Tanno 1907.) 





Adriatic fund. 


Mediterranean fimd. 


Sicilian fund. 


Total of the funds. 


Year. 


Average 
number 
of mem- 
bers. 


Average 
number 
of pen- 
sioners. 


Average 
number 
of mem- 
bers. 


Average 
number 
of pen- 
sioners. 


Average 
number 
of mem- 
bers. 


Average 
number 
of pen- 
sioners. 


Average 
number 
of mem- 
bers. 


Average 
number 
of pen- 
sioners. 


1890 


13.964 
13.927 
13,601 
13,286 
13,069 
12. 754 
12, 494 
12,341 
12,196 
11,9.37 
11,669 
11,368 
10,986 
10,569 
10,155 
9,762 
9,447 
9,240 


2,598 
2,997 
3,462 
3,817 
4,118 
4,438 
4,701 
4,959 
5,196 
5,442 
5,706 
5,951 
6,203 
6,453 
6,695 
6,924 
7,058 
7,123 


22,304 
22,506 
22,405 
22,205 
22,008 
21.895 
21,705 
21,503 
21,310 
20,902 
20,348 
19,843 
19,3.53 
18,859 
18,309 
17,753 
17,244 
16,820 


3.481 
3,883 
4,387 
4,809 
5,145 
5,489 
5,905 
6,318 
6,701 
7,155 
7,626 
8,070 
8.487 
8.870 
9,293 
9,618 
9.865 
10,099 


851 
844 
890 
915 
941 
954 
972 
951 
933 
907 
890 
875 
881 
900 
892 
889 
861 
861 


34 
40 
49 
55 

71 
90 

103 
136 
153 
184 
200 
218 
230 
260 
275 
282 
291 
293 


37.119 
37.277 
36.^96 
36,406 
36,018 
36.603 
36,171 
34, 79.5 
34.439 
33, 746 
32,907 
32.086 
31,220 
30,328 
29.356 
28,404 
27,552 
26,921 
26,321 


6,113 

6,920 

7,898 

8,681 

9,334 

10,017 

10,709 

11,413 


1891 


1892 


1893 


1894 


1895 


1896 


1897 


1898 


12,050 
12,781 
13,532 
14,239 
14,920 
15,583 
16. 263 


1899 


1900 


1901 


1902 


1903 

1904 


1905 


16,824 
17,214 


1906 


1907(a) 

1907 (fc) ...... 


17.515 
17,764 

















o First six months. 



t> Last six months: united fund. 



A study of the reports concerning the movement of membership 
of the pension funds furnishes very valuable material concerning 
the death rate and the disabihty and retirement rates of railroad 
employees. In the following tables these rates are computed for the 
entire membership as well as for the main groups. Perhaps the 
most interesting feature brought out is the small number of deaths 
or retirements due to accidents. Thus, for tlie ten years 1800 to 1899, 
the total number of retirements due to accidents was, for the two 
larger funds, 183, and the total number of fatal accidents 204, or 
18.3 and 20.4 per annum, respectively. With an average membership 
of 35,000 members, this gives a rate of one accidental invaUdity per 
1,913 employees, and one fatal accident to 1,716 employees. The 
general rate of retirements and deaths naturally increases, in view of 
the discontinuance of new admissions in 1S97, but not so rapidly as 
one would expect. To some extent this prohibition of new admis- 
sions was limited by the rule permitting transfers of members of the 
mutual benefit societies by promotion from a daily wage to a monthly 
salary. During 1890 to 1894 the average rate of retirement for old 
age and disability was 2 per cent, or 20 per tliousand; for 1895 to 1899, 
2.14 per cent, or 21.4 per thousand; for 1902 to 1906, 23.6 per thousand; 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1947 



and in 1907, 36.5 per thousand. The average death rate in 1890 to 
1894 was 9 per thousand; in 1895 to 1899, 8.6 per thousand; and in 
1902 to 1906, 9.7 per thousand. 

The percentages of resignations and dismissals are small, and have 
been growing very much smaller. As the constitution provided no 
repayments for members who resigned or were dismissed for cause, 
the increased value of the acquired rights to a pension evidently had 
the effect of counteracting the tendency both for resignations on the 
part of the employee and dismissals by liis superiors. 

MOVEMENT OF MEMBERSHIP IN THE ADRIATIC, MEDITERRANEAN, AND SICILI\N 

PENSION FUNDS, 1890 TO 1907. 

ISource: The annual reports of the funds. From 1890 to 1899 the Adriatic and Mediterranean funds onlT 

are included.] ' 



Number of members — 



Year. 



1890... 
1891 .. . 
1892... 
1893 . . . 
1894... 
1895... 
1896... 
1897... 
1898... 
1899... 
1902... 
19a3... 
1904... 
1905... 
1906. . . 
1907(c) 
1907 (d) 



Members lost because of— 



Disability. 



In Jan- 
uary. 



36,006 
36,529 
36,337 
35.676 
35,307 
34,846 
34,451 
33,946 
33,742 
33.271 
31,669 
30,764 
29.890 
28,847 
27,965 
27,167 
<26, 677 



Ad- 
mit- 
ted 
dur- 
ing 
year. 



1,697 
1,232 
688 
731 
594 
732 
614 
842 
676 
313 
149 
232 
107 
88 
61 
50 
62 



Total. 



37.703 
37, 761 
37,025 
36,407 
35,901 
35,578 
35,065 
34.788 
34,418 
33,539 
31,818 
30.996 
29.979 
28,935 
28,026 
27,217 
26, 739 



Due 
to 
old 
age 
and 
inva- 
lid- 
ity. 



616 

856 

891 

605 

651 

677 

725 

695 

712 

821 

353 

439 

(«) 

(«) 
(a) 

(«) 
(«) 



Due 

to 

acci- 
dent. 



To- 
tal. 



25 
18 
22 
25 
10 
17 
11 
10 
20 
25 
20 
17 
(«) 
(«) 
(«) 
(«) 
(«) 



641 
874 
913 
630 
661 
694 
736 
705 
732 
846 
716 
794 
805 
680 
534 
373 
612 



Per 
cent. 



Death. 



Nat- 
ural. 



306 
316 
302 
311 
297 
316 
276 
252 
288 
259 
180 
167 
(«) 
(«) 
(«) 
(«) 
(«) 



Acci- 
den- 
tal. 



26 

24 

15 

31 

11 

20 

20 

16 

20 

21 

12 

11 

(«) 
(a) 

(«) 
(«) 



To- 



Resigna- 

tion or 

dismissal. 



Per Nura- Per- 



tal. cent. ber. cent. 



332 
340 
317 
342 
308 
336 
296 
268 
308 
280 
304 
300 
278 
280 
298 
164 
140 



0.9 

.9 

.9 

.9 

.9 

.9 

.8 

.8 

.9 

.8 

1.0 

1.0 

.9 

1.0 

1.1 



{ 



201 

210 

123 

128 

86 

97 

87 

73 

107 

51 

34 

30 

39 

10 

27 

3 

21 



as 

.6 
.3 
.4 
.2 
.3 
.2 
.2 
.3 
.2 
.1 
.1 
.1 
(6) 

(») 

.1 



a Not reported separately. 

f> Less than one- tenth of'l per cent. 

c First six months. 



d Last six months. 
< lu July. 



The same data are given m the following table for each branch of 
the service, for the ten-year period 1890 to 1899, only the two large 
funds being included. In both funds the highest retirement rate Is 
found in the groups of maintenance-of-way and station service, and the 
lowest in the office force. The rates of retirement are much higher for 
the Adriatic fund, which had a membership of a much higher average 
age. The higher i*etirement rates for the maintenance-of-way and sta- 
tion service is partly due to a higher average age of these groups, rail- 
road employees being transferred to these easier occupations when they 



1948 



KEPORT OF THE COMMISSIONER OF LABOR. 



are considered because of their age unfit for the more strenuous duties 
of the active train service. Thus, in 1890 in the Adriatic fund there 
were among the office employees only 15.7 per cent 50 years of age 
and over ; among the engineers and firemen, 17.5 per cent ; in the train 
service, 18.7 per cent; in the station service, 20.2 per cent; and in the 
main tenance-of -way, 34.2 per cent. 

AVERAGE MEMBEHSHIP FOR 10-YEAR PERIOD 1890 TO 1899 IN THE MEDITERRANEAN 
AND ADRIATIC PENSION FUNDS, BY BRANCH OF THE SERVICE. 

[Source: The annual reports of the funds.] 





Mem- 
ber- 
ship. 


Members lost because of— 




Disability. 


Death. 


Resigna- 
tion or 
dismissal. 


Fund and branch of the service. 


Due 
to 
old 
age 
and 
inva- 
lid- 
ity. 


Due 
to 
acci- 
dent. 


To- 
tal. 


Per 
cent. 

1.7 
1.7 
2.5 
2.0 
1.4 


Nat- 
ural. 


Acci- 
den- 
tal. 


To- 
tal. 


Per 

(«nt. 

0.8 
.8 
.8 
.8 
.9 


Num- 
ber. 

2 
6 
4 

28 
24 


Per 
cent. 


Mediterranean fund: 

E ngineers and firemen 

Train service 


2,276 
2,120 
3,696 
6,793 

7,724 


33 

34 

91 

131 

110 


5 
2 
2 
5 
1 


38 

36 

93 

136 

111 


17 
15 
26 
52 
72 


2 
3 
3 
5 
1 


19 
18 
29 
57 
73 


0.09 

.28 


Maintenance of way 

Station service 


.11 
.41 


Office force 


.31 






Total 


22,609 


399 


15 


414 


1.8 


182 


14 


196 


.9 


64 


.28 










Adriatic fund: 

E ngineers and firemen 

Train service 


1,306 
1,061 
1,980 
2,4«1 
6,522 


27 
27 
98 
84 
92 


2 
3 
1 

1 


29 
30 
99 

85 
92 


2.2 
2.8 
5.0 
3.4 
1.4 


11 

7 

14 

22 
54 


1 
3 
2 
2 

1 


12 
10 
16 
24 
55 


.9 
.9 
.8 
1.0 
.8 


1 
3 
1 

16 
32 


.77 
.28 


Maintenance of way 

Station service 


.50 

.04 


Office force 


.48 






Total 


13, 3.56 

1 


328 


7 


335 


2.5 


108 


9 


117 


.9 


53 


.40 















Salaries. — For a better appreciation of the data concerning the 
pensions paid by these funds, it is necessary to give some information 
concerning the earnings of the Italian railroad employees. In the 
following tables the average salaries have been computed from the 
annual reports of the Adriatic and Mediterranean funds, as far as 
available, namely for 1890 to 1899, and 1890 to 1903, respectively. 
The average earnings have increased during this period from $314 to 
S369 in the Adriatic fund, and from $278 to $339 in the Mediterra- 
nean fund. Tliese averages are considerably higher than for the entire 
railroad personnel, asshownin the table on f)age 1936, and are explained 
by the fact that the pension funds included mainly the higher paid 
employees. The discontinuance of new admissions in 1897, except 
by transfer from the mutual benefit societies, in itself is responsible 
for a considerable increase in the average salar}^. As a matter of 
fact, the greatest increase in the average salary is noticeable in the 



\ 



\ 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1949 

class of office employees where the highest salaries are paid; while in 
some of the other groups there was little or no increase. 

The average remuneration of these employees in the Adriatic fund 
during the last five years for which information is available (1895 to 
1899) was as follows: Engineers and fireman, $410; train service, $281 ; 
maintenance of way, $185; station service, $204; and in office service, 
$450. In the Mediterranean fund data are available for a later period, 
1900 to 1903, and though more recent are somewhat lower, namely: 
Engineers and firemen, $399; train service, $276; maintenance of way, 
$175; station service, $192; and office employees, $477. 

AVERAGE ANNUAL SALARIES OF MEMBERS OF THE MEDITERRANEAN PENSION 
FUND, 1890 TO 1903, AND OF THE ADRIATIC PENSION FUND, 1890 TO 1899, BY BR\NCH 
OF SERVICE. 

[Source: The annual reports of the funds.] 





Engineers and fire- 
men. 


Maintenance of way. 


Train service. 


Fund and year. 


Member- 
ship. 


Average 

annual 

salary. 


MemT>er- 
shlp. 


Average 

annual 

salary. 


Member- 
ship. 


Average 
annual 
salary. 


Mediterranean fund: 

1890 


2,104 
2,131 
2,152 
2,154 
2,155 
2,190 
2,252 
2,293 
2,369 
2,351 
2,363 
2,372 
2,341 
2,329 

2,139 
2,291 
2,351 

1,009 
1,006 
980 
1,274 
1,336 
1,443 
1,461 
1,468 
1,462 
1,460 

1,121 
1,459 


$376 
377 
376 
377 
380 
377 
379 
378 
374 
377 
384 
388 
403 
420 

377 
377 
399 

443 
445 
449 
409 
407 
406 
406 
407 
412 
417 

431 
410 


4,154 
3,985 
3,857 
3,717 
3,618 
3,493 
3,399 
3,272 
3,151 
3,031 
2,885 
2,739 
2,653 
2,532 

3,8(i6 
3,269 
2,702 

2,385 
2,253 
2,032 
1,967 
1,897 
1,800 
1,713 
1,583 
1,5.35 
1,409 

2,107 

1,{>08 


$157 
157 
159 
160 
159 
160 
161 
160 
164 
168 
172 
173 
175 
179 

158 
163 
175 

176 
178 
179 
179 
180 
181 
182 
183 
186 
191 

178 

185 


2,053 
2,042 
2,049 
2,054 
2,062 
2,096 
2,075 
2,087 
2,033 
1,987 
1,923 
1,876 
1,815 
1,755 

2.056 
2,056 
1,842 

1,094 

1,063 

1,026 

1,007 

975 

943 

926 

1,040 

1,087 

1,110 

1,033 
1,021 


$251 


1891 


1892 


253 
232 


1893. . 


1894 


253 
2S3 


1895 


1893 


219 
2S3 


1897 


1898 


255 


1899 


256 


1900 


262 


1901 


265 

266 


1902 


1903 


285 
268 

2fa 
2S5 
276 

2T8 
275 


Average: 

1890 to 1894 


1895 to 1899 


1900 to 1903 


Adriatic fund: 

1890 


1891 


1892 


1893 


27o 


1894 


287 


1895. 


2S3 


1893 


284 


1897 


288 
279 


1898 


1899 


275 
27» 


Average: 

1890 to 1894 


1895 to 1899 


27» 
2Si 





1950 



EEPORT OF THE COMMISSIONEE OF LABOR. 



"^y^fTSt^^ "^^^^^^ ^^^"^^^^^ ^^ MEMBERS OF THE MEDITERRANEAN PENSION 

nv^?«v?pl' T't'l''.''^ ^^^ ADRIATIC PENSION FUND, 1890 to 1.119, BY BRANCH 
ur oiiiKViL/iii — Concluded. 



Fund and year. 



Mediterranean fund: 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1932 

1903 

Average: 

1893 to 1894 

1895 to 1839 

1900 to 1^33 

Adriatic fund: 

1890 

1891 

1892 

1893 

1894 

1895 

189.) 

1897 

1898 

1899 

Average: 

1890 to 1834 

1895 to 1899 



Station service. 



Memljer- 
ship. 



Average 

annual 

salary. 



6,768 
6,690 
6,591 
6,460 
6,483 
6,508 
6,368 
6,302 
6,288 
6,075 
5,886 
5,721 
5,574 
6,373 

6,599 
6,304 
5,638 

2,981 
2,833 
2,687 
2,551 
2,284 
2,161 
2,048 
1,967 
1,855 
1,790 

2,673 
1,964 



J178 
181 
179 
179 
179 
179 
179 
180 
180 
182 
185 

• 187 
197 
200 

179 
180 
192 

192 
192 
200 
196 
197 
199 
200 
210 
205 
206 

195 
204 



Office employees, etc. 



Mt^mber- 
ship. 



7,478 
7,607 
7,705 
7,671 
7,619 
7,542 
7,48) 
7,473 
7,373 
7,166 
7,029 
6,892 
6,722 
6,624 

7,616 
7,408 
6,817 

6,503 
6,695 
6,595 
6,452 
6,394 
6,275 
6,218 
6,0&3 
5,9&3 
5,839 

6,528 
6,080 



Average 

aimual 

salary. 



Total. 



S415 
415 
408 
404 
416 
419 
425 
427 
444 
444 
455 
465 
488 
498 

412 
432 

477 

408 
407 
412 
431 
429 
436 
445 
448 
456 
466 

417 
450 



M«'nil>er- 
ship. 



22,557 
22,455 
22,354 
22,056 
21,960 
21,829 
21,580 
21,427 
21, 194 
20,610 
20,080 
19,600 
19, 105 
18,613 

22,276 
21,328 
19,350 

13,972 
13,882 
13,320 
13,251 
12,886 
12,622 
12,366 
12, 141 
11,922 
11,608 

13,462 
12, 132 



Average 

annual 

salary. 



S378 
281 

280 
2lM) 
385 

286 
289 
2U2 
295 
300 
308 
315 
3:10 
339 

281 
292 
323 

314 
318 
385 
385 
33S 
344 
352 
3ri6 

3m 

3<)9 

31*6 
356 



Pensions.— In the following two tables is shown the activity of the 
pension funds in the distribution of pensions. The first table gives 
the total number of current pensions at the end of each y(iar, while the 
second table gives the number of new pensions granted during eacii 
year. Because of the great difficulty in obtaining material the tables 
are not as complete as they should be. 

No data were available for the Sicihan fund prior to 1901, and 
therefore totals for all the three funds could not be obtained for the 
earher years; and for the other two funds the data are incomplete 
for a number of years, mainly as far as the i)ensions to ori)lian families 
are concerned. The data presented are nevertheless sufficient to 
indicate the general results. 

The increase in the amount of pensions is better demonstrated in 
the second table, showing the average amounts of pensions granted 
during the years specified. The averages fluctuate mainly because 
of the diiference in the occupation of the employees pensioned, as the 
differences in the annual salaries of the different classes of employees* 
are considerable. The pensions of the widows include those with and 
without minor children, and for a few years the data were given sep- 



/' 

I 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1951 

arately for these groups; but as the total amounts given to the minor 
children are not very great the averages are affected but shghtly by 
combining all the widows into one group. The averages for members 
fluctuate from year to year between $180 and $300, seldom fallin*' 
outside of these hmits. If the means of five annual averages are con- 
sidered, then the increase from 1890-1894 to 1903-1907 for the 
Adriatic fund is from $198 to $257, and for the Mediterranean fund 
from $188 to $235. 

To appreciate the actual purchasing value of these pensions in 
Italy, it IS necessary to keep in mind not only the general level of 
prices and the standard of fiving, but also the wages paid. 

Roughly the widow's average pension equals about one-half of the 
employee's average pension. Taking the mean of the averages for 
all the funds for pensions granted each year, 1902 to 1907 the 
employee's pension equals $241, the widow's pension, $123, or 51 
per cent, while the average pension of a family of minor orphans 
equals $53 per annum, or about 22 per cent of the employee's pension 

V\Tien the entire number of current pensions is considered the 
average amount appears to be much smaller and less subject to fluc- 
tuations, though the tendency to a higher average pension is unmis- 
takable. In the Mediterranean fund the average current pension 
for 1889 to 1893 was $160, and for 1903 to 1907, $192; in the Adriatic 
fund the increase was from $172 to $206. The difference between 
the average amount of the current pension and that of the pension 
granted is easily accounted for by the survival of many very low pen- 
sions granted many years ago when the wages of the Itahan railroad 
employees were very much lower than they are now. 



1952 



REPORT OF THE COMMISSIONER OF LABOR. 

NUMBER, AMOUNT, AND AVERAGE OF PENSIONS PAID EACH 

[Source: The annual 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1953 



Fund and year. 



Pensions paid to- 



Mediterranean fund: 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907(c) 

Adriatic fund: 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

190G 

1907(c) 

Sicilian fund: 

1901 

1902 

1903 

1904 

1905 

1906 

1907(c) 

Total funds: 

1901 

1902 

1903 

1904 

1905 

1900 

1907(c) 

1907(d) 



Number. 



1,583 
1,770 
2,138 
2,471 
2,664 
2,824 
3,029 
3,322 
3,551 
3,794 
4,112 
4,357 
4,614 
4,801 
5,006 
5,218 
5,274 
5,356 
5,491 

1,103 
1,356 
1,640 
2,058 
2,215 
2,434 
2,623 
2,816 
2,9€0 
3,104 
3,246 

(«) 

3,497 

3,628 

3,731 

3,852 

3,955 

3.918 

3,956 

109 
114 
132 
135 
140 
134 
133 

8,220 
8,543 
8,869 
9,205 
9,369 
9,408 
9,580 
9,728 



Members. 



Amount. 



$2.13,098 
2t«, 657 
341,142 
430,685 
4151,252 
4X4,911 
529,804 
696,660 
648,401 
704,637 
7«4, ;93 
824, 150 
»13,409 
»»4,337 
949,582 
9)19,558 
l,ai6,563 
1,0.13, 365 
1,0J«9,202 

179,835 
227,590 
2«0,061 
3r.2, 136 
402, 631 
4.'iO, 826 
495,341 
543,108 
&V9,709 
696,925 
623,128 

685,075 
7)8,861 
738, 9^3 
769.995 
826, 445 
826, 516 
840,398 

24,390 
27,266 
33,017 
35,852 
37,827 
36,867 
36,872 

1,572,874 
1,650,464 
1,721,582 
1,795,405 
1,870,835 
1.896,748 
l,9<i6,472 
2,022,274 



Average. 



a Not reported. 

6 Not including pensions to minor children of widows, wliich in 1901 amounted to $18,870. 



$147 
152 
160 
170 
169 
172 
175 
180 
183 
186 
191 
189 
187 
188 
190 
190 
191 
193 
198 

163 
168 
171 
175 
182 
185 
189 
193 
192 
192 
192 



(«) 



196 
198 
198 
200 
209 
211 
212 

224 
239 
250 
266 
270 
275 
277 

191 
193 
194 
195 
199 
202 
21^5 
208 



I 



YEAR, 18S9 TO 1907, BY FUNDS AND CLASSES OF PENSIONS, 
reports of the funds.] 



Widows (with and without minor 
children). 



Number. 



1,619 
1,706 
1,850 
1,984 
2,150 
2,279 
2,444 
2,594 
2,738 
2,884 
3,088 
3,261 
3,465 
3,651 
3,839 
4,052 
4,202 
4,384 
4,435 

1,212 
1,301 
1,410 
1,503 
1,591 
1,688 
1,800 
1,898 
1,982 
2,070 
2,180 
(«) 
2,407 
2,545 
2,674 
2,817 
2,918 
3,019 
3,041 

105 
113 
125 

137 
141 
155 
161 

5,977 
6,309 
6,638 
7,006 
7,261 
7,558 
7,637 
7,730 



Amount. 



$134, 181 

143,815 

158,750 

(«) 
(a) 

(v 

(«) 
(a) 

> 288, 770 
» 315, 652 
358. 928 
382, 015 
402, 713 
426,268 
445,638 
465, 729 
472,566 

93, 468 
102, 628 
114,471 
124, 257 
129,963 
140,355 
154, 766 
166,314 
176, 744 
188, 142 
201, 634 

(«) 

249, 931 
268,068 
284, 605 
301,075 
315, .329 
329,830 
334, 735 

11,201 
12,260 
14,001 
15, .328 
15, 707 
19, 522 
20,054 

620,060 
662,343 
701,319 
742,671 
776,674 
815,081 
827, 355 
840, 051 



c First 6 months. 




14,582 
15,246 
15,894 
16,617 
17,024 
17,395 
17,636 
17,893 



35,958 
39,739 
47,231 
51,394 
53,575 
5«i, 465 
57,002 

2,210,595 
2,331,32(3 
2, 440, 5[^ 
2,556,909 
2, 665, so; 
2,732,371 
2,814,285 
2,883,212 



<»Last6montlis; united fund. 



156 
157 
157 
158 
164 
164 
•165 

165 
173 
182 
187 
190 
194 
193 

152 
153 
154 
154 
157 
157 
160 
161 



, 



1954 



REPORT OF THE COMMISSIONER OF LABOR. 

NUMBER, AMOUNT, AND AVERA(;E OF NEW PENSIONS GRANTED 

[Soiirce: The annual 



Fund and year. 



Adratic fund: 
1890 



1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900- 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 



Pensions granted to— 



Number. 



1907 (ft) 

Mediterranean fund: 
1890 



1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907(6).. 
Sicilian fund: 

1902 

1903 

1904 

1905 

1906 

1907 

Total funds: 

1902 

1903 

1904 

1905 

1906 

1907(6)... 

1907(c)... 



310 
382 
507 
261 
342 
313 
310 
281 
285 
299 



333 
313 
335 
314 
172 
131 

297 
468 
453 
338 
314 
362 
438 
397 
442 
533 
466 
494 
383 
458 
463 
390 
350 
316 

11 

22 

12 

8 

7 

1 

727 
793 
810 
712 
529 
448 
397 



a Not reported. 



b First six months. 



Memlters. 



Amoimt. 



166,903 
66,935 
98,008 
57,446 
73,416 
69,343 
70,484 
5.J,625 
56,344 
56,392 

76,051 
67,641 
80,352 
101,253 
44,730 
32,290 

64,231 
87,566 

104,712 
67,143 
62,126 
72,310 
98,038 
83,546 
02,905 

123, 470 
84,096 
87,604 
76,614 
95,974 
m, 131 
86,621 
82,489 
93,705 

4,165 
6,910 
4,382 
2,423 
1,789 
442 

155,830 
170,525 
180,865 
190,297 
129,008 
126,437 
110,765 



Average. 



1180 
180 
193 
220 
215 
222 
227 
191 
194 
189 



n 



225 
216 
240 
322 
260 
246 

183 

187 
231 
169 
198 
200 
224 
210 
210 
232 
180 
177 
200 
210 
208 
222 
236 
297 

379 
314 
365 
303 
256 
442 

214 
215 
223 
267 
244 
282 
279 



CHAPTER VII.— WORKMEN 's INSURANCE IN ITALY. 1955 

EACH YEAR, 1890 TO 1907, BY FUNDS AND CLASSES OF PENSIONS, 
reports of the funds.] 



Pensions granted to— 



Widows (with and without minor 
children). 



Number. 



121 
148 
137 
146 
153 
166 
142 
146 
154 
174 

(«) 

(«) 
195 
207 
224 
209 
203 
88 

138 

197 

192 

207 

174 

230 

220 

208 

259 

251 

274 

306 

261 

282 

331 

334 

358 

122 

9 
12 
12 

4 
29 

6 

465 
501 
567 
547 
590 
216 
204 



Amount. 



$12,071 
15, 153 
13,207 
16,556 
14,207 
19,411 
16,623 
16, 776 
16, 728 
18,586 

(«) 

(«) 
24,626 
26, 707 
28,557 
25,466 
26,393 
12,015 

14,394 
20,171 
20,050 
20,521 
17,850 
24,503 
21,761 
23,479 
26, 150 
29,406 
35,527 
33,940 
32,995 
30, 816 
38,243 
38, 746 
42,216 
14,986 

1,252 
1,851 
1,328 

452 
4,851 

742 

58,873 
59,374 
68, 128 
64,664 
73,460 
27, 743 
27,020 




5,687 


2n 


8.8tK2 


253 


5,710 


238 


2.875 


240 


6,676 


180 


1,184 


160 


217,936 


174 


232,866 


173 


253,605 


174 


258,426 


196 


207,856 


172 


155,675 


Sit 


139, 693 


209 



c Last six months; united fund. 



1956 



EEPOKT or THE COMMISSIONER OF LABOE. 



The following table, showing the number and amounts of pensions by 
the five branches of the service, further illustrates the v(5ry high level 
of pensions both to the members and to the widows. Unfortunately 
it was possible to bring the data down only to 1899 for the Adriatic 
fund and to 1903 for the Mediterranean fund, lat«r data not being 
available. But the fluctuations are not very great, nor could there 
be any radical change, since the provisions of the constitution regu- 
lating pensions have not undergone any important changes since 1890, 
while the rates of contributions from both sides have btien increased 
to meet the cost of the pensions. 

The average amount of the pensions fluctuated for engineers and 
firemen roughly between $200 and $300, for the train service person- 
nel between $150 and $200, for the trackmen and otlier persons 
employed in the maintenance of way between $100 and $120, for the 
station and yard service between $115 and $125, and among the 
ofiice force, this class containing the highest paid employees, between 
$300 and $400. The widows' average pensions are equal to about 
half the average pensions of the members. 

NUMBER AND AVERAGE PENSIONS GRANTED I'ACH YEAR TO MEMBERS AND 
THEIR WIDOWS BY THE ADRIATIC AND THE MEDITERRANEAN PENSION FUND8 
1880 TO 1903, BY BRANCH OF THE SERVICE. 

[Source: The annual reports of the funds,] 





Pensions granted each year to — 


Fund and year. 


Engineers 

and 
firemen. 


Train 

service 

employees. 


Mainte- 
nance- 
of-way 
employees. 


station 

service 

emjrfoyees. 


Ofllce 

employees, 

etc. 


Total 




Num- 
ber. 


Aver- 
age. 


Num- 
ber. 


Aver- 
age. 


Num- 
ber. 


Aver- 
age. 


Num- 
ber. 


Aver- 
age. 


Nnm- 
ber. 


Aver- 
age. 


Num- 
ber. 


Aver- 
age. 


MEMBERS. 

Adriatic fund: 

1890 


27 
30 
30 
36 
26 
22 
25 
21 
31 
23 

155 
127 

24 
40 
29 
38 
33 
34 
31 
44 
35 
69 
37 


•250 
223 
239 
274 
211 
275 
294 
303 
273 
254 

254 

278 

241 

264 
229 
241 
266 
269 
245 
231 
228 
284 
258 


17 
21 
30 
17 
28 
31 
32 
25 
37 
23 

113 
148 

21 
40 
31 
29 
42 
32 
45 
23 
49 
40 
47 


$193 
179 
212 
185 
187 
182 
177 
176 
181 
180 

193 
179 

205 
162 
183 
159 
187 
179 
172 
144 
183 
187 
188 


123 

125 

212 

42 

53 

83 

82 

85 

80 

104 

555 
434 

G3 

116 

89 

110 

76 

98 

68 

106 

83 

107 

113 


S105 
104 
106 
115 
112 
112 
104 
123 
119 
103 

106 
112 

110 
111 

no 

96 

104 
106 
102 
115 
110 

im 

107 


70 

100 

113 

82 

114 

75 

69 

77 

65 

76 

479 
302 

119 
171 
108 
100 
85 
124 
160 
126 
167 
180 
172 


$121 
123 
121 
114 
126 
117 
125 
115 
117 
118 

121 
118 

119 
123 
115 
115 
114 
118 
116 
117 
112 
115 
108 


73 
100 
122 

84 
121 
102 

1(¥) 


$336 
329 
3% 
361 
350 
388 

one 


310 
382 
507 
261 
342 
313 
310 
281 
285 
299 

1.802 
1,488 

300 
468 
406 
370 
316 
379 
424 
420 
445 
645 
477 


$1W 
180 
l'J3 
220 
215 
222 
2'J7 
191 
194 
189 

196 
205 

181 
187 
226 
181 
193 
196 
209 
222 
190 
2W 
184 


1891 


1892 


1893 


1894 


1895 


1896 


1897 


73 1 323 

TO OOTk 


1898 


1899 


C8 

500 
417 

73 

101 

149 

93 

80 

91 

120 

121 

111 

149 

108 


374 

357 
304 

317 
363 
385 
334 
3.36 
378 
399 
436 
360 
447 
357 


Total— 

1890 to 1894 

1895 to 1899 

Mediterranean fund: 

1890 


1891 


1892 


1S93 


1894 


1895 


1896 


1897 


1898 


1899 


1900 



CHAPTEE VII. WOEKMEN's INSURANCE m ITALY. 1057 

NUMBER AND AVERAGE PENSIONS GRANTED EACH YEAR TO MFICRPRR av-« 
THEIR WIDOWS BY THE ADRIATIC AND THE MEDITERRANEa\ pExSoN FU^^^ 

1890 TO 1903, BY BRANCH OF THE SERVICE-C^ncluded. i'E^SION Ft NDS. 



Fund and year. 



MEMBERS— Concluded. 

Mediterranean fund— Con. 

1901 

1902 

1903 

Total— 

1890 to 1894 

1895 to 1899 

I«00tol903 



WIDOWS, (a) 



Adriatic fund: 

1890 

1891 

1892 

1893 

1894 , 

1895 

1896 

1897 

1898 

1899 

Total— 
1890 to 1894. 
1895 to 1899. 
Mediterranean fund: 

1890 

1891 

1892 

1893 

1394 : 

1895 

189ti 

1897 

1898 

1899 

1900 

1901 

1902 

i9a3 

Total— 
1890 to 1894., 
1895 to 1899.. 
1900 to 1903.. 



Pensions granted each year to— 



Engineers 

and 
firemen. 



Num- AveX' 
ber. j age. 



Train 

service 

employees. 



Mainte- 

nance- 

of-way 

employees. 



44 

36 



164 
213 
183 



10 

9 

11 

14 

6 

7 
8 

7 
4 
5 

50 
31 

11 
11 
13 
11 
10 
11 
12 
13 
28 
14 
15 
20 
14 
11 

56 
78 
60 



$240 
307 
302 

250 
256 
279 



124 
127 
132 
105 
153 
111 
114 
126 
126 
101 

124 
115 

107 
151 
114 
136 
90 
153 
127 
122 
106 
124 
105 
119 
117 
125 

120 
122 
116 



Num- 
ber. 



55 
36 
49 

163 
189 

187 



10 
8 
8 
7 
6 

11 
4 
6 
3 
6 

39 
30 

17 
18 
13 
10 

6 
13 
13 

9 
12 
13 
12 
12 , 
14 
16 

64 
fO 
54 



.\.ver-:Num 
age. ber. 



$172 
170 
204 

177 
176 

184 



79 
98 
83 
90 
47 
66 
73 
68 
62 
81 

81 
70 

93 
90 
78 
71 
85 
68 
64 
69 
65 
80 
73 
72 
91 
74 

85 
69 
78 



Station Office 

service | employees, 
employees. etc. 



Aver- Num- 
age. ber. 



121 

75 

110 

454 

462 
419 



33 
29 
36 
13 
18 
17 
8 
12 
10 
11 

129 
58 

26 
37 
27 
23 
14 
22 
26 
11 
25 
14 
20 
19 
12 
IQ 

127 

98 
70 



$103 
110 
133 

106 
108 
113 



63 
54 
64 
47 
45 
57 
58 
62 
56 
55 

57 

57 

71 
60 
56 
55 
50 
53 
61 
55 
57 
51 
68 
59 
56 
48 

59 

56 
58 



165 
135 
142 

583 
757 
614 



33 
49 
40 
15 
25 
18 
12 
10 
20 
9 

162 
69 

42 
60 
32 
33 
24 
44 
42 
36 
33 
31 
32 
46 
34 
44 

191 
186 
15C 



Aver- Xum- 
age. ber. 



$116 
116 
127 

118 
115 
117 



77 
65 
68 
53 
53 
48 
65 
56 
61 
62 

65 
58 

67 

63 

51 

51 

57 

58 

54 

55 

57 , 

57 

57 

64 

51 

50 

m 

56 
56 



106 
91 
89 

496 
592 
394 



32 
53 
42 
39 
28 
27 
30 
39 
42 
41 

194 
179 

42 
71 
39 
50 
45 
46 
40 
41 
40 
45 
59 
48 
66 
48 

247 
212 
221 



Total. 



Aver- Num- Aver- 
age, ber. I age. 



$333 
359 
355 

353 
408 
351 



1C9 
160 
145 
150 
112 
146 
134 
136 
136 
125 

151 
132 

166 
153 
157 
128 
130 
160 
169 
137 
134 
152 
188 
164 
168 
14S 

149 
151 
168 



491 
373 
456 

1.860 
2.213 
1,797 



118 
148 
137 
88 
83 
80 
62 
74 
79 
72 

574 
367 

138 
197 
124 
127 
9» 
136 
133 
110 
138 
117 
138 
145 
140 
138 

685 
634 
561 



$177 
196 
207 

1»4 

211 
191 



102 

102 

96 

110 

78 

91 

104 

101 

103 

101 

99 
100 

104 

102 

95 

91 

90 

100 

97 

95 

90 

103 

121 

105 

117 

08 

99 

97 

100 



o Not including widows of pensioners since 1893. 

The relation between the average pension and the average salarv, 
by branches of the service, is clearly brought out in the foUowi^ 
table. Five-year averages have been used so as to eUminate acci- 
dental annual variations. The members' pensions amount to about 
60 to 70 per cent of the wages, and the ividows' pensions about 30 to 
35 per cent. The pensions are proportionately highest among the 
oliice employees where longer service is possible before invaUditv 
occurs. "^ 



-J 



1958 



KEPORT OF THE COMMISSIONER OP LABOR. 



PROPORTION BETWEEN SALARIES AND PENSIONS OF ADRIATIC AND MEDITER. 
RANEAN PENSION FUNDS, BY BRANCHES OF THE SERVICE, 1890 TO 1903. 

(Computed from preceding tables.] 





Engineers and firemen. 


Train nervlce. 




Aver- 
age 
sal- 
ary. 


Average pension granted 
to— 


Aver- 
age 
sal- 
ary. 


Average pension granted 
to— 


Fund and year group. 


Members. 


Widows. 


Members. 


Widows. 




Amt 


Per 
cent 
of sal- 
ary. 


Amt. 


Per 
cent 
of sal- 
ary. 


Amt. 


I»er 
cent 
of sal- 
ary. 


Amt. 


Per 
cent 
of sal- 
ary. 


Adriatic fund: 

1890 to 1894 


$431 
410 

377 
377 
399 


$254 
278 

250 
256 
279 


58.9 
67.8 

66.3 
67.9 
69.9 


$124 
115 

120 
122 
116 


28.8 
28.0 

31.8 
32. 4 
29.1 


$279 
281 

252 
255 
276 


$193 
179 

177 
176 
184 


C9.2 

c:<. 7 

70.2 
(i9.0 

m.7 


$81 
70 

85 
69 
78 




1895 to 1899 


29.0 


Mediterranean fund: 

1890 to 1894 


24.9 


1895 to 1899 


33.7 


1900tol903 


27.1 




28.3 




Maintenance of way. 


Station service. 


Adriatic fund: 

1890 to 1894 

1895 to 1899 


$178 
185 

158 
lti3 
175 


1105 
112 

106 
108 
113 


59.0 
60.5 

67.1 
66.3 
64.6 


$57 
57 

59 
56 
58 


32.0 
30.8 

37.3 
34.4 
33.1 


$195 
204 

179 
180 
192 


$121 
118 

118 
115 
117 


62.1 
57.8 

65.9 
63.9 
60.9 


$65 
58 

59 

56 
56 


33.3 


Mediterranean fund: 

1890 to 1894 


28.4 


1895 to 1899 


33.0 


1900 to 1903 


31.1 




29.2 




Office force. 


All occupations. 


Adriatic fund: 

1890 to 1894 


$417 
450 

412 
432 
476 


$353 
364 

353 
408 
351 


84.6 
80.9 

85.7 
94.4 

73.7 


$151 
132 

149 
151 
168 


36.2 
29.3 

36.2 
36.0 
36.3 


$326 
356 

281 
292 
323 


$196 
205 

194 
211 
191 


ra.i 

57.6 

69.0 
72.3 
69.1 


199 
100 

99 

97 
109 




1895 to 1899 


30.4 


Mediterranean fund: 

1890 to 1894 


28.1 


1895 to 1899 


35.2 


1900 to 1903 


33.2 




33.8 



Finances.— A general review of the finances of the three pension 
funds since their organization in 1890 is given in the following table. 
Then- combined assets in 1890 were $15,841,525, and in 1907 when the 
three funds were united the assets amounted to over twenty-two 
million dollars. Nevertheless, a more careful analysis shows that 
their finances were not in a satisfactory condition. The annual excess 
of income over expenditures rapidly decreased except for the small 
Sicilian fund. The Adriatic fund had a deficit annually since 1900, 
wliich the very much increased revenues of 1902 (i. e., the increase of 
members' contributions from 4.5 to 5.5 per cent of the salary, and of the 
railroad contributions from 5 to 8 per cent) succeeded in reducing only 
for a time, but could not altogether obliterate. The Mediterranean 
pension fund also showed a deficit in 1901, and while the increased 
revenues of 1902 succeeded in creating a surplus, it rapidly declined 
during the following years. As the number of pensioners rapidly 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1959 

grew, the expenditures mcreased Yer>^ much faster than the income- 
thus the combined revenues in 1907 ($2,827,439) show an increase of 

S^no^o..^!^ ^^' ''""^ 7^' ^^^'^ ^^ ^^^^' ^^^ ^^^ expenditures 
i^^,809,9d7) are more than four times as great as those for 1890 

Of course, as the admission of new members was practically discon- 
tinued in 1897, the pension funds were winding up their affairs, but 
the computation of the actual obligations repeatedly indicated that 
the funds were not solvent. 

FINANCES OF THE ADRIATIC, MEDITERRANEAN, AND SICILIAN PENSION FUNDS 

1890 TO 1907. " ' 

[Source: The annual reports of the funds.] 



Year. 



Income. 



1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902.. 
1903., 



1904 

1905 

1906 

1907 («>).... 
1907(c) 



■| 



$1,909,181 
1,954,609 
1,968,871 
3,021,310 
1,994,996 
1,995,528 
2,038,856 
2,089,741 
2,103,058 
2,132,529 
2,160,622 
2, 127, 123 
2,271,512 
2,662,908 
2, 639, 712 
2,599,843 
2,774,611 
1 , 429, 406 
1,398,033 



Expendi- 
tures. 



$694, 974 
851,864 
1,041,785 
1,179.658 
1,281,915 
1,413.310 
1,560,400 
1,675,604 
1,783,306 
1,927,454 
2,054,405 
2,179,066 
2,300,282 
2,415,397 
2,517.570 
2, 598, 827 
2. 753, 202 
1.362,330 
1,447,607 



Surplus. 



Deficit. 



$1,214,207 
1, 102, 745 
927.086 
841,652 
713,081 
582,218 
478,456 
414, 137 
319, 752 
205,075 
100,217 



247,511 

122.142 

1,016 

21,409 

07,076 



$51,943 
28.770 



49,574 



Assets at end 
of year. 



$15,841,525 
16,944.2?0 
17,871,356 
18,713,008 
19,426,069 
20,008,307 

20,702.104 
21,116.241 
21,435.993 
21,641.068 
21,747.285 
21,695.342 
21, 666, 572 
21,914.083 
22,036,225 
22,037.241 
22,058,650 
22. 125. 726 
22,076,152 



In"tKi?r^'e4a ""'' '^"'' ''"' ^''' ^° '''' ^'^ ^b- ^^"^J"« ^ 1S96; the figures are given as shown 
b First six months. 
e Last six months; united fund. 

In the following table the income and expenditures of the three 

Cr°. w^'-^"' '^'",!? f""- ^^^ period since their reorganization in 
iM2 until their consohdation into one pension fund in 1907 

The total income for 1906 amounted to $2,774,61 1, and for the first 
SIX months of 1907 to $1,429,406. The regular raih-oad contributions 
represented the largest item in these two years, being in 1906 $978 560 
or 35.3 per cent of the total. Adding to this the income from the 
proceeds of the sale of tickets of admission to stations, $90,993 or 
3.3 per cent, the total share of the raih-oads was 38.6 per cent Income 
from interest and mvestments in some years even exceeded the rail- 
road contributions; in 1906 it amounted to 35.2 per cent of the total 
inus the employees themselves contributed only one-fourth ('>5 1 
per cent) of the total revenues of the funds. 

A decided increase in the revenues is noticeable in 1902 as compared 
with the pr«.eding years. This is caused by the increase of the con- 
tnbutions of both tlie members and the raikoads, as pointed out in 
67725°— VOL 2—11 30 



1960 



EEPOET OF THE COMMISSIONER OF LABOR. 



the history of the funds. The members' contributions were 4 5 per 
cent of then- salaries until October 20, 1902, and 5.5 per cent since 
that date. Thus for the larger part of the year the smaller contri- 
bution was exacted. On the same date the railroads' contribution 
changed from 5 per cent to 8 per cent of the salaries; thus the m(>m- 
bers' contribution increased by 22.2 per cent, and that of the railroads 
by 60 per cent. As a result, the share of the members' contributions 
to the total revenue increased from 25.() per cent in 1902 to 26.4 per 
cent m 1903, while that of the raikoads increased from 29.3 per cent 
to 34.8 per cent. 

In the expenditures of the pension funds the main item naturally 
consists of members' pensions, followed by widows' pensions, the 
latter including the shares of minor children whose mothers are living 
Pensions to orphans do not represent a very large amount, and lump- 
sum benefits are insignificant, notwithstanding numerous provisions 
m the constitutions of the funds concerning such benefits. The vast 
majority of the members of the pension funds evidently earn pen- 
sions. The proportion between the amounts paid out to members 
and to widows remains fairly uniform. In 1902 the amount paid to 
widows was about 40 per cent, and in 1906 about 42 i>er cent of the 
amount paid to members. This proportion indicates tliat the Italian 
railroad pension funds are much more than merely old-age and 
mvahdity pension funds, since they protect thousands of families of 
deceased employees and pensioners. 

INCOME AND EXPENDITURES OF THE PENSION Fl NDS, BY SOURCE OF INCOME AND 

ITEM OF EXPENDITURE, 1902 TO 1907. 

[Source: The annual reports of t le funds.] 

INCOME. 



Fund, source of inoome, and 
Item of expenditure. 


1902. 


1903. 


1904. 


1905. 


1333. 


1907. (a) 


Adriatic fund: 

Members* contributions. . . 
Railroad's contributions . . 
Interest, etc 


$224,190 
254.110 
348,710 

30,618 

13,937 
191 


$266,716 
366,552 
351,640 

28,952 

5,625 


$269,704 
362. 888 
350,400 

28,514 

6,239 


$256,755 
354,435 
348,633 

24,571 

4,881 


$270,883 
876,111 
W2,673 

37,845 

8,770 


$151,938 

209,:{34 


Sale of tickets of admi,s,sion 
to stations 


162,061 


Accident compen.sations, 

excess of receipts. . . 
All otter ;; 


12,H39 

6,117 
6,355 


Total 


871,756 


1,019,485 


1,017,745 


989,275 


1,056,282 


647, (i44 


Mediterranean fund: 

Members' contributions. .. 
Railroad's contributions .. 
Interest, etc 


-336,540 

388,990 
529,538 

39,647 

15,169 
5,002 


411,184 
525,315 
542,627 

39,413 

9,234 

4,989 


378, 418 
535,643 
527,613 

42,220 

11,105 
10,320 


368,306 
526,095 
534,943 

43,131 

20,714 
11,270 


398,894 

6(>3,828 

^ 538,902 

51,987 

10,937 
8,679 


224,297 
309, H45 


Sale of tickets of admission 
to stations 


262,357 


Accident compensations, 

excess of receipts 

Another 


11,807 
7,341 




3,846 


TotAl 


1,314,886 


1,532,762 


1,511,.J19 


1,504,519 


1,673,287 


819,493 



o For first 6 months only. 



CHAPTER VII.— WOKKMEN *S INSURANCE IN ITALY. 1961 

INCOME AND EXPENDITURES OF THE PENSION FUNDS, BY SOURCE OF INXOME 4.XD 

ITEM OF EXPENDITURE, 1902 to 1907lconcluded ^ 

INCOME— Concluded . 



Fund, source of income, and 
it«m of expenditure. 



Sicilian fund: 

Members' contributions. . 
Railroad's contributions. , 

Interest, etc 

Sale of tickets of adinission 

to stations 

Accident com])ensations, 

excess of receipts , 

All other 



1902. 



1903. 



Total. 



Total funds: 

Members' contributions. . . 
Railroads' contributiems. . . 

Interest, etc 

Sale of tickets of adinission 

to stations 

Accident comiyensations, 

excess of receipts . . 
Another 



$20,511 
22,263 
38,525 

1,825 
*'i,"746" 



84,870 



1904. 



$25,177 
34,155 
40,397 

1,387 

153 

9,392 



110,661 



$24,017 
34.319 
42,430 

1,305 

284 
8,293 



1905. 



1900. 



581,241 
665,363 
916,772 

72,091 

29,106 
6,939 



703,077 
926,022 
934,604 

69,752 

15,012 
14,381 



110,648 



$25,738 
34.917 
44,217 

1,172 

5 



$27,742 
38,621 
75,693 

1,161 

"i,"825' 



106,049 



145,042 



Grandtotal | 2,271,512 



2,662,908 



672,139 
932,850 
920,443 

72,039 

17,628 
24,613 



2,639,712 



650,859 
915. 447 
927,793 

68,874 

25,600 
11,270 



2,599,843 



697,519 
978, 5«:0 
977,328 

90,993 

19,707 
10,504 



2,774,611 



1907.« 



$16.2gr 
22.306 
22.760 

eas 



218 



62.269 



392.522 
541. 4S5 
447,178 

25,244 

13,458 
9.419 



1,429,406 







EXPENDITUBES. 




Adriatic fund: 
Pensions to — 

Members 


$707,979 

258.796 

8,595 


$734,101 $753,190 

275,153 298.115 

8,318 8,681 


$794,567 

296,700 

7,819 


$859,951 

330. 779 

8,013 




Widows 


$414,042 


Orphans 


164.337 




3,901 


Total pensions.. . 


975,370 


1,017,572 i 1,059,986 


1,099,086 1.198,743 


582.280 


iiUmp-sum benefits . . . 
All other expenditures. 


1,352 
5,645 


327 
15,200 


286 

4,418 


1,756 
1,519 


802 
195 


531 


Total expenditures.. 


982,367 


1,033,099 


1,064,690 


1,102,361 


1.199,740 


582.811 


Mediterranean fund: 
Pensions to — 

Members 


890,897 

376,681 

9,582 


933.384 


972,356 


993,440 

437,794 

11,418 


1,018.006 

457,223 

11,608 




Widows 


516.285 


Orphans 


iiy4,y24 1 41/, /M 

9,929 ' 11,280 


228,918 




5,977 


Total pensions 

Lump-sum l^enefits. . . 
All other expenditures. 


1,277,100 


1,338,237 1 1,401,400 


1,442,652 


1.486,837 


751,180 


3,086 


1,280 


1,122 
377 


898 
160 


1,274 
10,288 


601 








105 


Total expenditures. . 

Sicilian fund: 
Pensions to— 

Members 


1,280.246 


1,339,517 


1.402,899 


1,443,710 


1,498,399 


751.886 




(ft) 
(ft) 
(ft) 


(ft) 
(ft) 
(ft) 


37.210 
15,202 

118 


37,054 

17,965 

41 




Widows 


17.961 


Orphans 


9,6:)2 




20 


Total pensions 


37.G(.9 


42,274 


49,855 


62,530 


55,050 


27,633 


All other expenditures. 




160 
347 


126' 


218 
8 


is" 




Total expenditures . . 

Total funds: 

Pensions to — 

Members 


37,6C9 


42,781 


49,981 


52,756 

1,825,217 

749.696 

19,355 


55,063 


27,633 


c 1,598, 876 

c 635. 477 

« 18, 177 


cl, 607,485 

c 670, 077 

c 18, 247 


c 1,725,546 

c 715, 879 

c 19, 961 


1,915.011 

805,957 

19,662 




Widows 


948.308 


Orphans 


402,887 


- 


0,888 


Total pensions 

T __ . 


2,290,199 


2,398,083 


2,511,243 


2,594,268 


2,740,630 


1.361,093 


l^ump-stira benefits 
All other expenditures! 


4,438 
5,645 


1,767 
15,547 


1,408 
4,921 


2,872 
1,687 


2,076 
10,496 


1,132 
106 


Total expenditures.. 


2,300,282 


2,415,397 


2,517,570 


2,598,827 


2,753,202 


1.362,330 


» * irst 6 months only, b Not .«>- 


larif^elxT 1-OT-./1 


T^t\^ e> XT.«.4. 


i_ 1.. J* ^, 









SicUian fund, not separately reported. 



1962 



REPORT OF THE COMMISSIONER OF LABOR. 
STATE RAILBOAD MTTTTTAL BENEFIT SOCIETY. 



Tins institution was primarily a compulsory sickness insurance so- 
ciety and only secondarily an old-age pension fund at the same tim(3. 
Gradually, however, the old-age benefits became the most important 
funetion, and eventually widows' and orplians' pensions were added. 
Ihe history of the origin and various changes of the individujd 
mutual benefit societies and their consoHdation into one organization 
has been given hereinbefore. 

The purpose and scope of this society embraces medical and sani- 
tary service, sick benefits, invalidity pensions, or lump-sum subsidies 
where the right of pension has not yet been acquired, and, in addition, 
similarly to the pension fund, it assumed the administration of acci- 
dent compensation to its members. Since 1905 it has also granted 
pensions to widows and orphans. 

Membership in this fund was compulsory, and included all persons 
who held membership in one of the three mutual benefit societies on 
December 31, 1896. This included mainly the employees of lower 
grades; but as in the original constitution of the Mutual Benefit 
Society of the Alta Italia Railroad, employees were permitted to hold 
membership in both organizations. Many of the emplovees retained 
membership in both the pension fund and the mutual benefit so- 
ciety. These evidently did not need any of the invalidity and old- 
age pensions of the mutual benefit society. The membership was 
therefore divided into two groups, ^^ordinary,'' who hdd member- 
ship m the mutual benefit society only, and '^aggregate'' members 
{compaHedpanti aggregati) holding membership in both organizations. 

The activity of this institution was many sided, as explained above! ' 
It embraced insurance against sickness, accidents, old age and inva^ 
hdity, ^^r\\}l some provisions for the orphans and widows, not so exten- 
sive by far as in the ci.se of pension funds. 

BENEFITS. 

A free medical service was kept up and supported by ihe mutual 
benefit society m conjunction with the second section of the new 
provident institute, both societies contributing their respective 
shares of the net cost in proportion to the total annual salaries of the 
respective memberships. The constitution of 1907 further pro- 
vided that as soon as this amount becomes greater for the second 
section of the new provident institute the management shaU be 
transferred to it. 

Some features of this medical service were free to all employees 
of the railroads, whether holding membership in either of the two 
organizations or not. These free functions included (1) the deter- 
mmation of the fact of illness; (2) the furnishing and maintenance 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1963 

in repair of orthopedic apparatus (this, however, was limited to 
results of injuries in the course of service, as far as nonmembers 
are concerned); (3) the supply of antifebriles in recognized cases of 
malaria; and (4) the maintenance of life-saving appliances and 
furnishing of emergency first aid. The cost of the last two functions, 
and also of the first two as far as applied to nonmembers, was reim- 
bursed to the mutual benefit society by the railroad administration. 
Medical Aid to Members.— The medical care of the members of 
the mutual benefit society and of the second section of the provident 
institute was not limited to the few functions enumerated above. 
It included all medical and surgical aid, medicines or their cost, 
hospital treatment when necessary, and other special treatment 
during illness or convalescence (but not including the cost of boarding 
and lodging), the cost of transportation of the sick or injured mem- 
bers to their homes or to the hospital, and, finally, funeral benefits, 
calculated at 5 per cent of annual wages, but not below 30 lire 
($5.79). 

Sick Benefits. — The above numerous forms of medical and surgi- 
cal or pharmaceutical aid were granted to all members of the mutual 
benefit society as well as to those of the second section of the provi- 
dent institute. The sick benefits, as compensation for wages lost, 
were paid only to the ''ordinary" members, when because of illness 
no wages were paid. The sick benefits amounted to two-thirds of 
the daily wage beginning with the fourth day of illness and for not 
over 180 days in any one calendar year. No sick benefits were paid 
in case of ilhiess, due to disorderly conduct, vice, fights, or in work 
outside of the railroad service, or when the sick member declined to 
enter a hospital when directed or to subject himself to the orders of 
the physicians of the society. 

Old-age and Invalidity Pensions.— These may be described 
under two headings, pensions and lump-sum payments. Old-age 
and invalidity pensions were primarily intended for the ''ordinary" 
menibers, the "aggregate" members receiving very little outside of 
medical treatment and other similar benefits. 

The constitution of the society did not provide for any straight 
old-age pensions, but only for "continuous disability benefits." 
This means that the society did not recognize any standard retire- 
ment age; but as the benefits were continuous they may be classified 
with pensions,, and as they were paid for disability they seem 
necessarily to include disability arising from old age. The require- 
ment of 15 years of membersliip as a condition of granting such 
benefits brings them still nearer to old-age pensions. 

After 15 years of membership, if forced to give up his employment 
because of proven disability (invalidity) the male employee holding 
membership in the society received a continuous benefit (or pension) 



1964 



BEPOBT or THE COMMISSIONEE OF LABOB. 



IjCMP-SUM BENEFrrs to Membfkq Tf . ' 1 

relieved of his position hecluT^TT{^-l u .""^ ""iployee was 
bership in tlie societv Ln J n^«J'^t>' before 15 years of mem- 

the last three veai3 LrlZht f T'^^ *'^""' ^^'"'y during 
of two montls'7y aecrdinrt: Irr"'^"^^^^ "'"\^ "^^--^ 
disabihty was due iTinSn reSvlw ^'"■'^' '°°""* '"^^'- " 

this benefit was increase" b7o7e-fStithr^'"' '"" ^^f^*"'^' 
average annual salary ' ^'^^' * mimnium of half the 

siol' werja'nt^dTf ^'T^^^T'''' "'"'^'^^^ ^^^^^^ or pon- 

the last 3 veara )JTjh . *''^ ^^^'^S** ^"""^ «alary of 

length, buUra'^JirU'rt'tV^'^^^^^^^ 

ZeCliZeTrirjvtii r- ^^- -^^^^^ 

.ght. as a^:uS;L:itf st^ro^r.^^ ^^*^ ^- 
ber"x"x d^fjrrr;e^r Thr ^^" -- 

sum benefit computedTccordin! t T '^'^*'?'^>ty' received a lump- 
tbe amount paidt Mnrb;te^lltT:r ^' '^-^ ^^^'^ ^^^^^ 

pen^tlnTrrtu^anetTsLLtJ'^ ^ P-^ ^- ^He 

benefit societies c^frpro^^tf™ "''^''*^^^^ ""/ '^' '""*"'J 
orphans of deceased menfCor JinSoronW *'" r^'^'^' 
the law of April 22 1905 fArt 21 w! i ? V ® societies. But 
roads by the Governmen n!' . ' f'f"'**J^g ^^^^ operation of rail- 
beginning with July nQosiTl^tli^ ^r*"'' ^^^^-^-on 

members who die or wl th . ! *''"' ^** "'P''*"" "^ ^^^^^ 
wno die or leave the railroad service after June 30, 1905 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1965 

No rights were acquired by tliis amendment by the sur%-ivors of 
deceased members who died before July 1, 1905, or who died subse- 
quently but had been separated from the service before July 1, 1905 

The widow's right was subject to the condition that she had not 
been legally separated from her husband through any fault of hers. 
Furthermore, both her rights and those of her children were condi- 
tioned upon the foUowing: That her marriage had taken place at 
least two years before the day of the member's death or dismissal 
from service, Mid that it was solemnized before the husband was 50 
years old. This latter condition was waived, however, if the death 
was due to malaria or injury. All minor children, whether legitimate 
illegitimate, adopted, etc., provided they were unmarried, were 
entitled to share in the pension. 

These conditions, appUcable to widows and children, were waived 
in case of marriages solemnized before July 1, 1905. The widows' 
pensions were to run until death or remaniage, and the children's 
pensions untU reaching majority, or m case of the giils, until marriage 
if preceding such majority. ' 

The pension which the deceased member had been actually receiv- 
mg before death, or if he died in active service, that to which he would 
have been entitled if he had been forced to resign because of invaUdity 
on the day of his death, was taken as a basis of these ^\idows' and 
orphans' pensions. 

Of the actual or computed amount of the member's pension the 
widow received 50 per cent if she alone survived, and if minor chil- 
dren also survived she received 65 per cent in all. If children alone 
survived they received 50 per cent equally distributed, with a new 
redistribution eveiy time one of them became of age. If only one 
minor child survived he received 25 per cent. 

If in addition to the widow and her children other minor children 
of the deceased by a previous marriage survived, the 65 per cent was 
distributed in equal shares among all these survivors, the widow 
receiving two shares, and in no case less than 25 per cent. 

These pensions or continuous payments to the widow and chUdren 
were evidently the exception, for they were due only to the widow or 
children of such members as were receiving or were entitled to pen- 
sions at the time of death, and moreover, only if the grantin.' of the 
pension or the death in service had taken place since July 1 1905 
If the husband died in active service before 15 years of memberehip 
or If he died as a pensioner, said pension havmg been granted to him[ 
before July 1, 1905, the family received only a smaU lump-sum bene- 
nt. If he died m service this lump sum amounted to one-twentieth 
of the average annual salary of the last three years of service for 
each year of membership m the society, with a mhiimum of two 
months pay and a maximum of one year's pay according to such 



1966 



EEPOET OF THE COMMISSIONER OF LABOR. 



disease which are compensated under special laws or regulations 

If a member who was reUeved from the servicp ZH ■' ■ 

a pension died and his family was^t entltC^ ? ^ 'f^'^'^^ 

f "Sf :t^^t ittir -bS :E 

of recogmzed mistake in a disciplinary .lismis^ B,,, X^ , 

♦k„ „ -i . • "t* . * **^' *i<» who were not memb(!rs of anv nf 
the providen mstitut ons and were not insured in some o the way 
The proyisions regulating this branch of the societv^., nrnt-. ^* 

pTsSi^dt'^'Th T- ^° •: ^""^™^ thVr/^::Lrof7h: 

pS-t^^tyislt tHl^^al^^^^^^^ came 

benefit society the payments as regulaterbTthl Tw mlT 
received the payments due to them as member and if T.,';, *! 






CHAPTER VII.— workmen's INSURANCE IN ITALY. 1967 

tion due under the law, the cost of medical treatment, etc. ^Mien 
pensions instead of lump-sum payments were due under the accident 
law, the capital necessary was transferred to the National Old- \ge 
and InvaHdity Insurance Institution, by which the annuities were 
paid. 

SOURCES OF INCOME. 

Notwithstanding the important extension of benefits by the law 
of AprU 22, 1905, granting widows and orphans' pensions, the general 
scale of benefits paid by the mutual benefit society was somewhat 
lower than that of the pension fund. On the other hand, the cost of 
medical service and sick benefits was a charge which the pension fund 
was not called upon to meet. The sources of revenue of the mutual 
benefit society were numerous, as is seen from the following list* 

1. Assets transferred to the society at the time of its organization 
or to be transferred to it in conformance with the law of March '>9 
1900 (surtax upon rates.) ' 

2. The deductions from the members' pay. 

3. Contributions from the railroad administration. 

4. Income from fines and penalties imposed upon the railroad 
personnel. 

5. The net proceeds of the sale of unclaimed articles found any- 
where on the railroad premises. 

6 The net proceeds from the sale of railroad tariffs and time- 
tables. 

7. The unclaimed overcharges on freight. 

8. Excess sums found in the cash accounts of stations 

9 Donations and legacies without special designation of purpose. 

10. All other revenue which may be assigned to the society 

11. Income for the investment of the funds 

Members' CoNTRiBUTiONS.-Most of these sources of revenue were 
mdehnite contingent upon many other conditions; but the contribu- 
tions of the employees and employers were strictly established by the 
constitution. J ^ 

The ordinary members contributed untU October 21, 190'> 3 per 
cent and since that date 3i per cent of their salaries and other emolu- 
ments for contract work, overtime, etc. As in the case of the pension 
funds, these contributions were partly offset bv an annual redistribu- 
tion among those members who are subject to the accident law of 
one-half of the reimbursements from the raUroad administration to 
the society for payments under the accident insurance. The reason 
for such redistribution is patent. As the mutual benefit society out 
of Its own funds compensated for invahdity due to accidents those of 
Its members who were not protected by the accident law and was 



. / 



1968 



EEPOBT OF THE COMMISSIONEB OF LABOR. 



reimbursed when granting accident compensations to persons so 
protected, it is evident that a portion of its revenues was expended 
in a form of benefits, payable only to those of its members not other- 
wise provided for, and if their contributions were equal to those of 
the members protected by the accident law, then in view of tlie 
mutual character of the society, one class of members would l)e 
contributing for the benefit of the other class. The amount so dis- 
tributed was very slight however. 

The ''aggregate'' members, whose rights to benefit were rather 
limited, paid only 1 per cent of their salary. 

Employers' Contribution.— The regidar contributions of the 
railroad administration were increased twice since their reorganiza- 
tion in 1890. Up to October 21, 1902, they amounted to 3 per cent, 
or were equal to those of the employees. From October 21, 1902, to 
December 31, 1905, they were 4.2 per cent, and since January 1, 1900, 
they became very heavy, amounting to 8.15 per cent of the annual 
wages of the ''ordinary" members. It contributed nothing on 
account of the "aggregate" members. This contribution was in- 
creased since the nationalization of the railroad business, when pen- 
sions to widows and orphans were introduced, thus considerably re- 
ducing the difference between the respective benefits of the better 
paid members of the pension fund and the lower paid members of the 
mutual benefit society. 

administration. 

The rules for administration of the mutual benefit society were 
practically identical with those of the pension fund. 



STATISTICS. 

Membership.— The movement of the membership of the three 
mutual benefit societies is shown in the following table. The decrease 
in membership was even more rapid than in the case of the pension 
funds, for a large proportion of the members were employees of the 
lower grades, in which changes are more frequent and tenure of 
service less secure. As was explamed above, there were two grades 
of membership, "ordinary" and "aggregate," the latter holding mem- 
bership in the pension fund at the same tune. The total average 
annual membership decreased from 60,851 to 36,789, or nearly 40 per 
cent. The greatest reduction was in the number of "aggregate" 
members, which was reduced to less than one-half, decreasing from 
the time of the first reorganization of the society in 1890. The 
number of "ordinary" members began to decrease in 1896, when 
admission of new members was discontinued. The decrease of mem- 
bers proceeded from two reasons, not only because of se})aration from 



CHAPTER VIL— workmen's INSURANCE IN ITALY. 1969 

the service, through death, invalidity, resignation, dismissal or any 
other reason, but also by promotion from a daily wage to a monthly 
salary which carried with it a transfer from membership in the 
mutual benefit society to that in the pension fund. 

AVERAGE ANNUAL MEMBERSHIP OF THE THREE MUTUAL BENEFIT SOCIETIES 

1890 TO 1907. '^'xxr.o, 

[Source: The annual reports of the societies.] 





Adriatic society. 


Mediterranean society. 


Sicilian 
society. 


Total. 


Year. 


"Ordi- 
nary" 
mem- 
bers. 


"Aggre- 
gate" 

mem- 
bers. 


Total 
mem- 
ber- 
ship. 


"Ordi- 
nary" 
mem- 
bers. 


"Aggre- 
gate" 
mem- 
bers. 


Total 
mem- 
ber- 
ship. 


"Ordi- 
nary" 
mem- 
bers. 


"Ordi- 
nary" 
mem- 
bers. 


"Aggre- 
gate" 

mem- 
bers. 


Total 
mem- 
ber- 
ship. 


1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907(a).... 
1907(b)... 
1907 


20,801 
21,091 
21,418 
20,603 
19, 788 
19, 128 
18,605 
17,950 
17,161 
16,465 
15,744 
15,083 
14,525 
13,981 
13,513 
13, 136 
12,829 
12,602 


5.713 
5,508 
5,148 
4,841 
4,611 
4,369 
4,135 
3,906 
3,681 
3,456 
3,255 
3,057 
2,824 
2,588 
2,356 
2,168 
2,014 
1,909 


26,514 
27,199 
26,506 
25,444 
24,399 
23,497 
22,740 
21,856 
20,842 
19,921 
18,999 
18, 140 
17,349 
16.509 
15,869 
15,301 
14,853 
14,511 


18,060 
18,061 
18,103 
18,549 
18,936 
19,442 
20,263 
20,301 
19,329 
18,540 
17,923 
17,110 
16,409 
15.878 
15,322 
14,839 
14,404 
14,060 


13,792 

13,399 

13,002 

12,636 

12,193 

11,734 

11,349 

10,970 

10,574 

10,144 

9,690 

9,218 

8,768 

8.360 

7,921 

7,512 

7,171 

6,942 


31,852 

31,460 

31,105 

31.185 

31,129 

31,176 

31.612 

31,277 

29,903 

28.684 

27,613 

26,328 

25.177 

24,238 

23.243 

22.351 

21.575 

21,002 


2,485 
2,459 
2.405 
2,405 
2,444 
2,605 
2.751 
2,743 
2,632 
2,491 
2,347 
2,230 
2,139 
2,039 
1,946 
1,887 
1.845 
1,808 


41,346 

42,211 

41,936 

41,557 

41,168 

41,175 

41,619 

40,994 

39,122 

37,496 

36.014 

34.423 

33,073 

31.898 

30.781 

29,862 

29.078 

28,470 

27,9C0 

28. 210 


19,505 

18,907 

18,150 

17.477 

16.804 

16,103 

15,484 

14,882 

14,255 

13,600 

12,945 

12.275 

11,592 

10.948 

10.277 

9.6S0 

9.195 

8.851 

8,478 

8,579 


00.851 

61.118 

60,076 

59,034 

67,9?2 

57,278 

57.103 

55.876 

53.377 

51,096 

48.959 

46.698 

44.665 

42.846 

41,058 

39.542 

38.273 

37.321 

36.438 

36.789 




















a First six months. 



















The number of employees separated from the service throu.'h dis- 
abihty, death, resignation or cUsmissal is shown for the mutual 
beneht societies as far as data were available in the following table 
Ihe rate of retirement is somewhat lower than that of the member- 
ship of the pension funds, because there is no provision for regular 
o d-age retirement and because of the transfer of large numbers of 
older men to the pension funds. The death rate does not appear 
to be much greater than for the pension fund membership 



I 



1970 



REPORT OF THE COMMISSIONER OF LABOR. 



MOVEMENT OF MEMBERSHIP IN THE MUTUAL BENEFIT SOCIETIEH, 1902 TO 1907. 

[Source: The annual reports of the societies.] 



Number of members — 



Members lost because of— 



Society and year. 



1902... 
1903... 
1904... 
1905... 
1906... 
1907(6) 
1907(c) 



In Jan- 
uary. 



33,604 
32,505 
31,373 
30,292 
29,434 
28, 721 
d28,321 



Ad- 
mit- 
ted 
dur- 
ing 
year. 



Resignation 
or dismissal. 



14 

10 

3 

8 
2 



Total. 



33,618 
32,515 
31,376 
30,300 
29, 436 
28,721 
28,324 




a Not separately reported. 5 First six months. c Last six months; united society. d I„ July 



Salaries.— For the proper appreciation of the data concernincr the 
pensions granted it is necessary to get a clear idea as to the average 
salaries paid, and such data would be meaningless unless given by 
separate occupational groups. Such data are presented in the fol- 
lowing table, as far as available, namely, for the Adriatic fund for 
1890 to 1903 and for the Mediterranean fund for 1890 to 1901 In 
the original reports of the Adriatic fund the wages were stated by 
the day for 1890 to 1892, and in the subsequent years they were 
stated m computed annual amounts on the assumption of 340 work- 
ing days per annum. The same method of computation was there- 
fore used for the earher three years as well. 

The average earnings of the entire membership of these societies 
are only about one-half of that of the members of the pension funds 
This IS partly due to the inclusion of the female employees in the 
track service who are paid a mere pittance of about $33^ to $35 per 
annum. But the differences are considerable even if separate groups 
are considered," which clearly indicates that the lower-paid portion 
of the personnel held membership in the mutual benefit societies 
Some increase in the average salary has been noticeable, but not so 
great as m case of those who belonged to the pension funds. There 
is practically none as far as the ^lediterranean society is concerned 
for the years 1890 to 1901, and the increase in the Adriatic society 
seems to be due mainly to the rapid decrease in the number of em- 
ployees of some low-paid groups. As the promotion of an employee 
to a higher group was followed by his transfer to the pension fund, 
this explains the slow rate of increase of the average salary. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1971 

MEMBERS OF THE MUTUAL BENEFIT SOCIETIES AND THEIR WERAGE VXVT-AT 
WAGES, 1890 TO 1903, BY BRANCH OF THE SERVICE ^^^-^^AL 

[Source: The annual reports of the societies.] 



Society and year. 



Adriatic Society: 

1890 

1891 

1892 ■" 

1893 

1894 

1895 

1896 

1897 

1898 

1899 .' ■ " ■ 

1900 

1901 

1902 

1903 .." 

Mediterranean Society: 

1890 

1891 

1892...- 

1893 

1894 

1895 

1896 

1897 

1898 ■ 

1899 

1900 

1901 



Society and year. 



Engineers and 
nrenxen. 



Mem- 
bers. 



705 
771 
812 
508 
450 
343 
334 
275 
225 
175 
112 
106 
109 
107 

310 
283 
358 
357 
356 
345 
337 
364 
333 
421 
468 
505 



Aver- 
age an- 
nual 
wages. 



Train service. 



Mem- 
bers. 



1177 
177 
177 
177 
179 
184 
185 
192 
198 
207 
230 
239 
243 
246 

189 
185 
175 
175 
177 
176 
177 
177 
175 
173 
172 
169 



893 
893 

887 



929 
952 
958 
785 
701 
027 
536 
480 
436 
418 

376 
319 
315 
322 
325 
366 
440 
501 
598 
706 
842 
823 



Aver- 
age an- 
nual 
wages. 



S140 
143 
145 
148 
149 
151 
154 
156 
159 
163 
169 
176 
182 
187 

146 
147 
148 
148 
145 
144 
141 
141 
140 
140 
141 
141 



Maintenance of 
way (males). 



Mem- 
bers. 



Aver- 
age an- 
nual 
wages. 



station service. 



Mem- 
bers. 



Adriatic Society: 

1890 

1891 

1892 

1893 ------- 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 .".■.'!.'.""| 4'99i 

Mediterranean Society: ' 

1890 

1891 

1892 ■; 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 



7,195 
7,417 
7,214 
6,960 
6,641 
6,408 
6,254 
6,099 
5,902 
5,717 
5,520 
5,352 
5,175 



Aver- 
age an- 
nual 
wages. 



Office employees, 
etc. 



Mem- 
bers. 



6,680 
6,525 
6,347 
6,395 
6,206 
6,257 
6,531 
6,031 
5,427 
4,981 

1901 :;:;:;:::::: ifm 



S138 
138 
139 
142 
144 
146 
148 
151 
153 
156 
158 
161 
166 
160 

138 
138 
137 
138 
138 
138 
138 
139 
140 
143 
145 
144 



Aver- 
age an- 
nual 
wages. 



246 

238 

236 

250 

269 

267 

276 

273 

282 

274 

270 

285 

291 

288 

389 
330 
301 
260 
258 
221 
306 
200 
128 
130 
140 
175 



$182 
184 
184 
185 
184 
183 
187 
188 
189 
194 
196 
202 
211 
215 

196 
202 
202 
201 
208 
216 
208 
229 
252 
249 
245 
259 



7,904 


$108 


7,795 


108 


7,476 


109 


7,2^ 


110 


7,055 


111 


6,904 


111 


6,787 


112 


6,440 


113 


6,206 


114 


5,975 


115 


5.772 


116 


5,536 


118 


5,333 


123 


5,066 


125 


4.496 


111 


4.583 


111 


5,078 


109 


5.454 


108 


5,^48 


107 


6.195 


107 


6.498 


106 


6.331 


107 


6,159 


107 


6.039 


108 


5.883 


111 


5,666 


112 



Shop employees. 



Mem- 
bers. 



4,006 

4,070 

3,992 

3,818 

3,697 

3,589 

3,461 

3,348 

3,248 

3,137 

2,963 

2,845 

2,743 

2,669 

4.805 
4,655 
4,627 
4,536 
4,573 
4,635 
4,951 
4,796 
4,614 
4,513 
4,321 
4,012 



Aver- 
age an- 
nual 
wages. 



$191 
191 
192 
194 
195 
197 
198 
200 
202 
204 
207 
210 
220 
223 

203 
202 
200 
200 
208 
209 
207 
210 
212 
216 
217 
220 



Maintenance of 
way (females). 



Mem- 
bers. 



Aver- 
age an- 
nual 
wages. 



663 
579 
453 
428 
398 
354 
322 
289 
250 
213 
194 
172 
149 
135 

1,202 
1.168 
1.317 
1,431 
1.550 
1.750 
1,095 
1,622 
1,554 
1,476 
1.389 
1,299 



S32 
32 
33 
33 
32 
33 
33 
33 
33 
34 
34 
34 
34 
34 

35 
34 
34 
34 
34 
33 
33 
33 
33 
33 
33 
33 



Total. 



Mem- 
bers. 



Aver- 
age an- 
nual 
wages. 



21,612 
21.763 
21,070 
20,137 
19,439 
18,817 
18,392 
17,509 
16,814 
16,118 
15,367 
14, 776 
14,236 
13,674 

18.258 
17,863 
18,343 
18,755 
19,116 
19, 769 
20,758 
19,845 
18,813 
18,266 
17.580 
16,649 



$135 
137 
138 
140 
141 
143 
144 
146 
148 
150 
152 
155 
161 
164 

144 
143 
140 
138 
139 
137 
138 
139 
140 
142 
144 
145 



1972 



BEPOET OF THE COMMISSIONEE OF LABOR. 



^Statistics of SiCKNEss.-During the period 1891 to 1900 the 

cernmg the cause of chsabihty, data wJ.ich give a rare and valuahl^ 
opportuBity to compare the sickness rates and the naturTof dfsea t 

reliable s ckness statistics by occupations in this country that the 
presentation of these data is thought to be useful ^' 

pres" Sed on"r^.*r' '^' f *'^ '^'' ^""^ '"^ ^ ^^^'^ed because 
presented on a different classification of diseases. As the num- 
bers upon which the rates are based are not very large (abo^t 
30 000 employees for each year), and fo, each separate group vey 
much smaller It was thought preferable to combine the data L Ihe 

Dmecl data. The total membership for the nine vears is- F,>r 
engmeer. and firemen, 16,027; train service, 16,620; mltenance o 

pZesT ; l^'Zr'' «^'^«^= --^"-e 'of way (femaHm! 
ployees), 16 370, station service, 97,853; office force, etc., 6,367- shoD 

SnThT'-orr' *?*''S^!f'««^- ^ "- table the .liff^e t' 
tween the ordmary" and "aggregate" members is disregarded and 
all sickness is mcluded, whether compensa ted or not. 

Ihe variations from year to year are not disclosed in these table. 
Such variations may be due to purely local or temporal^ causefan i 
are not important, but rather form a disturbing elemenUn the stud v 
of sickness rates, except as they might ii.dicai a tendency toward 
an increase or decrease. ^"ueQcy toward 

SERVICE. ^^^ ^^^^ YEARS 1892 TO 1900, BY BRANCH OF 

_ [Computed from the annual reports of the societies.] 



Causes of disability. 



EngintHTs and firemen. 



Cases of disability. 



Nuinl)er. 



DISEASES. 



Per cent 
of total. 



Infectious diseases. . 

Malaria "' 

General tuberculosis 

Syphilis 

Diseases of— 

Metabolism 

Nervous system 

Respiratory system. .'..'.." 

Circulatory system 

Genito-urinary system! 

Digestive svstem .. . 

Organs of locomoti<m 

Theskin... 

Affecting sight .* "' 

Affecting hearing 

Hernia 



Total. 



9,668 
2,805 

eo 

218 

152 

2.071 

3.110 

778 

453 

10.085 

5,205 

3,922 

1,331 

147 

98 



22.2 

6.5 

.1 

.5 

.3 
4.8 
7.2 
1.8 
1.0 
2a2 
12.0 
9.0 

ai 

.3 
.2 



Average 

per 1») 

members 



Days of di»jj>ility. 



Number. 



Per cent 
of total. 



6a3 

17.5 

.4 

1.4 

.9 

12.9 

19.4 

4.9 

28 

62.9 

32.5 

24 5 

&3 

.9 

.6 



77,149 
32,635 

3,259 
4,568 

1,837 
24,170 
43,256 
11,899 

7,096 
73,271 
59.820 
52,318 
14,212 

1,588 

1,890 



16.7 

7.1 

.7 

1.0 

.4 

5.2 

9.4 

2.6 

1.5 

15.9 

12.9 

11.3 

3.1 

.3 

.4 



Average 
per ease. 



8.0 
11.6 
543 
21.0 

12.1 
11.7 
13.9 
15.3 
15.7 
7.3 
11.5 
13.3 
10.7 

las 

19.3 



Average 

per 100 

members. 



481.4 

203. « 

20.3 

28.5 

11.5 
150.8 
269.9 
74 2 
44 3 
457. 4 
373.2 
326.4 

8a7 

9.9 
11.8 



CHAPTER VII.— WOfiKMEN 'S INSURANCE IN ITALY. 1973 

CAUSES OF DISABILITY OF THE MEMBERS OF THE MFmTFi^u axttt . x^ r. 



Engineers and firemen. 



Days of disability. 



1 . 

Per cent i Average ■ -'^^'^rage 
of total. ' per case P^*" ^^0 
members. 



Not in service 
In service 




Infectious diseases 

Malaria 

General tuberculosis 

Syphilis 

Diseases of — 

Metabolism 

Nervous system 

Respiratory system 

Circulatory system 

Genito-urinary system.! .' .' 
Digestive system . . . 
Organs of locomotion 
Theskin... 

Affecting sight 

Affecting hearing. . . 

Hernia 



ACaDENTS, 



Not In service 
In service. . «. . 



Grand total 31,954 



DISEASES. 



Infectious diseases 

Malaria 

General tubercidosis 

Syphilis '" 

Diseases of— 

Metabolism 

Nervous system ..... 

Respiratory system . . . . 

Circulatory system.... 

Genito-urinary system. 

Digestive system 

Organs of locomotion. 

The skin 

Affecting sight ] ] . 

Affecting hearing. . . 
Hernia 



Maintenance of way (male employees). 



23,507 

31.967 

122 

145 

324 
3,490 
8,008 
1,030 

718 

12,585 

6,794 

7,169 

1,660 

227 

170 



Total. 



97, 916 




161,481 

217,593 

6,160 

2,252 

3,516 

41,352 

108,517 

15, 1.37 

97,564 
88,566 
88,606 
19,410 
2,529 
3,185 



865,850 



17.2 

2ai 

.6 

.2 

.4 
4 4 

11.5 
1.6 
1.1 

10.4 

9.4 

9.4 

2.1 

.3 

.3 



92.0 



a9 

&8 
5a5 
15.5 

ia9 

11.8 

lae 

14 7 

ia9 

7.8 

lao 

12.4 
11.7 

11.1 

18.7 



as 



198.4 

267.4 

7.6 

2.8 

43 

50.8 

13;J.3 

18.6 

12.3 

119.9 

108.8 

108.9 

23.g 

3L1 

3.9 



1.0619 



i 



1974 



EEPOHT OF THE COMMISSION! EE OF LABOR. 



°Sii=— ™""=^^^^ 



Causes of disability. 



ACODENTS. 



Not in service. 
In service 



Total 

Grand total. 



DISEASES. 



Infectious diseases 

Malaria 

General tuberculosis 

Syphilis 

Diseases of— 

Metabolism 

Nervous system 

Respiratory system 

Circulatory system 

Geni to-urinary system. 

Digestive system 

Organs of locomotion. . 

The skin 

Affecting sight 

Atfecting hearing 

Hernia 



Total. 



ACCIDENTS. 



Not in service . 
In service 



Total 

Grand total. 



DISEASES. 



Infectious diseases 

Malaria ]* 

General tuberculosis .... . . 

Sjrphilis 

Diseases of— 

Metabolism 

Nervous system '. 

Respiratory system 

Circulatory system 

Genito-urinary system. 

Digestive system 

Organs of locomotion . . 

The skin 

Affecting sight 

Affecting hearing 

Hernia 



Maintenance of way (male employees). 



Cases of disability. 



Days of disability. 



Number. 



Per cent 
of total. 



1,625 
3,016 



4,641 



102,557 



2,510 

2,774 

24 

5 

59 

494 

909 

188 

2,720 

1,524 

459 

469 

162 

28 

5 



12,:«0 



95 
130 



225 
12,655 



Total. 



42,328 

24, 444 

303 

414 

804 

7,958 

14,048 

2,645 

1,331 

33,127 

15,996 

15,329 

3,507 

468 

407 



163,099 



1.6 
2.9 



Average 

per 100 

members. 



2.0 
a7 



4.5 



100.0 



5.7 



126.0 



Number. 


Per cent 
of total. 


Average 
per case. 


Average 

per ICO 

members. 


20,326 
54, 144 


2.2 
5.8 


12.5 
18.0 


25.0 

66.5 


74, 470 


8.0 


16.0 


91.5 


940,320 


100.0 


9.2 


1,155.4 



Maintenance of Avay (female employees). 



20.0 
22.1 
.2 
(«) 

.5 

3.9 

7.3 

1.5 

21.7 

12.1 

3.7 

S.7 

1.3 
o 

(«)■" 



18.4 

20.3 

.2 

.4 

3.6 

6.7 

1.4 

19.9 

11.1 

3.4 

3.4 

1.2 

.2 



9&2 



90.2 



21,150 

24, 736 

1,383 

242 

1,110 

5,792 

14,013 

2,675 

39,947 

15,030 

5,653 

6,494 

2,172 

289 

108 



14.6 

17.0 

.9 

.2 

.8 

4.0 

9.7 

1.8 

27.5 

10.4 

a9 

4.5 

1.5 

.2 

.1 



140,794 



97.1 



.8 
1.0 



.7 
.9 



1.8 
100.0 



1.6 



1,272 
2,932 



4,204 






144,998 



.9 
2.0 



&4 

&9 

5.8 

4&4 

1&8 
11.7 
15.4 
112 
14 7 
9.9 
12.3 
13.8 

la 4 

10.3 
21.6 



11.5 



114 
22.6 



2.9 



100.0 



1&7 



11.5 



Station service. 



24.1 

14.0 

.2 

.2 

.5 
4.5 
8.0 
1.5 

.8 

1&9 

9.1 

8.7 

2.0 

.3 

.2 



93.0 



43.3 


302,599 


25.0 


194,110 


.3 


14,291 


.4 


8,169 


.8 


9,825 


8.1 


90,629 


14.4 


195,786 


2.7 


;«,030 


1.4 


21,333 


33.8 


232.578 


16.3 


188,841 


15.7 


196,995 


3.6 


40,241 


.5 


4,790 


.4 


6,898 


166.7 


1,540,115 



17.5 

11.3 

.8 

.5 

.6 

5.3 

11.4 

1.9 

1.2 

13.5 

10.9 

11.4 

2.3 

.3 

.4 



89.3 



7.1 

7.9 

47.2 

19.7 



a Less than one-tenth of 1 per cent. 



b Less than one-tenth of a case. 



154.7 

180.9 

10.1 

1.8 

&1 

42.4 

102.5 

19.6 

292.2 

109.9 

41.4 

47.6 

15.9 

2.1 

.8 



1,029.9 



9.3 
21.5 



sas 



1,060.7 



309.2 

19&4 

14.6 

&3 



12.2 


10.0 


11.4 


92.6 


i;i.9 


200.1 


12.5 


3.3.8 


1«. 1 


21.8 


7.0 


237.7 


11.8 


193.0 


12.9 


201.3 


11.5 


41.1 


10.5 


4.9 


16.9 


7.1 


9.4 


1,573.9 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1975 

CAUSES OF DISABILITY OF THE MEMBERS OF THE MEDITERRANEAN RAILROAD 
MUTUAL BENEFIT SOCIETY FOR THE NINE YEARS 1892 TO 1900, BY BRANCH OF 
SERVICE-Continued. 



Causes of disability. 



Total. 



ACCIDENTS. 

Not In service 

In service 



Total 

Grand total. 



DISEASES. 

Infectious diseases 

Malaria 

General tuberculosis 

Syphilis 

Diseases of— 

Metabolism 

Nervous system 

Respiratory system 

Circulatory system 

Genito-urinary system. 

Digestive system 

Organs of locomotion. . 

The skin 

Affecting sight 

Affecting hearing 

Hernia 



Total 

ACCIDENTS. 

Not In service 

In service 

Total 

Grand total 



67725°— VOL 2—11- 



Station service. 



Cases of disability. 



Days of disability. 



Number. 



ACCTDENTS. 

Not In service 

In service ,.. 

Total 

Grand total 



DISEASES. 

Infectious diseases 

Malaria 

General tuberculosis 

Syphilis 

Diseases of— 

Metabolism 

Nervous system 

Respiratory system 

Circulatory system 

Genito-urinary system. 

Digestive system 

Organs of locomotion. . 

Theskui 

Affecting sight 

Affecting hearing 

Hernia 



3,538 
8,739 



12,277 



175,376 



Per cent 
of total. 



9,136 



102 
101 



203 



9,339 



14,778 

1,835 

95 

417 

323 
3.346 
4,745 
1,394 

700 

13,498 

6.602 

8,038 

1,635 

156 

222 



67,784 



1,463 

6,089 



7,552 



65,336 



2.0 
5.0 



7.0 



100.0 



Average 

per 100 

members, 



3.6 
8.9 



12.5 



Number. 



38,943 
145,667 



184,610 



179.2 



1,724,725 



Per cent 
of total. 



2.3 

8.4 



ia7 



loao 



Average 
per case. 



Office force, etc. 



2,177 


2a3 


1,995 


2L4 


19 


.2 


41 


.4 


37 


.4 


497 


5.3 


885 


9.5 


209 


2.2 


126 


L3 


1,883 


20.2 


556 


6.0 


496 


6.3 


159 


1.7 


44 


.5 


12 


.1 



34.2 

3L3 

.3 

.6 

.6 
7.8 

13.9 
3.3 
2.0 

29.6 

a7 

7.8 

2.5 

.7 

.2 



97.8 



1.1 
1.1 



2.2 



loao 



143.5 



1.6 
1.6 



S.2 



146.7 



16,985 

19,833 

557 

763 

347 

4,899 

13,303 

2,975 

2,650 

15,341 

7,264 

6,240 

2,085 

462 

212 



93,916 



1,396 
1,751 



17.5 

2a4 

.6 

.8 

.4 

5.0 
13.7 

ai 

2.7 

15.8 

7.5 

6.4 

2.2 

.5 

.2 



3.147 



96.8 



1.4 
1.8 



a2 



97,063 



loao 



Shop employees. 



22.6 

2.8 

.2 

.6 

.5 
5.1 
7.3 
2.1 
LI 

•2a7 

10.1 

12.3 

2.5 

.2 

.3 



88.4 



2.3 
9.3 



35.4 
4.4 

.2 

to 

.8 

8.0 

11.4 

13 

1.7 

32.3 

15.8 

19.2 

a9 

.4 
.5 



138.3 



117,490 

16,802 

8,085 

10,750 

3,912 

38,342 

80,705 

22,563 

12,429 

95,576 

87,314 

113,192 

20,253 

1,840 

3,366 



632,619 



842 



11.6 



100.0 



a 5 

14 6 



l&l 



156.4 



18.737 
100,147 



118,884 



751,503 



2.5 

ia3 



15.8 



loao 



ILO 

16.7 



15.0 



9.8 



Average 

per 100 

members. 



7.8 

9.9 

29l3 

1&6 

9.4 

919 

15lO 

14 2 

2L0 

&1 

lai 

12.6 

lai 
las 

17.7 



ia3 



ia7 

17.3 



15.5 



16.6 


&0 


2.2 


a2 


LI 


85.1 


L4 


25w8 


.5 


12.1 


5.1 


1L5 


ia7 


17.0 


ao 


ia2 


L7 


17.8 


12.7 


7.1 


n.6 


ia2 


15.1 


141 


2.7 


12.4 


.3 


U.8 


.5 


15u2 



12.8 
1&4 



15.7 



sas 

148.9 



188w7 



1,762.S 



26&8 

31L5 

&8 

12.0 

5.5 

76.9 

208.9 

46l7 

41.6 

24a9 

114 1 

98.0 

32.S 

7.3 

as 



1,47a 1 



2L9 
27.5 



4a 4 



ia4 1,624 6 



28L3 
4a2 

ia4 

25.7 

a4 

9L8 

19X2 

540 

2as 

22a9 
209.1 
271.0 

4a6 

44 

&1 



ia9 I 1,514 8 



449 
23a8 



2847 



11.5 I 1,799l5 



-31 



1976 



BEPORT OF THE COMMISSIONER OF LABOR. 



CAUSES OF DISABILITY OF THE MEMBERS OF THE MEDITERRANEAN RAILROAD 
SERVICE — Concluded. 



Causes of disability. 



DISEASES. 

Infectious diseases 

Malaria 

General tuberculosis 

Syphilis 

Diseases of— 

Metabolism 

Nervous system 

Respiratory system 

Circulatoiy system 

Genito-urinary system. 

Digestive system 

Organs of locomotion. . 

The skin 

Affecting sight 

Affecting hearing 

Hernia 



All employees. 



Cases of disability. 



Days of disability. 



Number. 



Total. 



ACCIDENTS. 



Not In service. 
In service 



103,853 

C8,207 

tKi9 

1,378 

1,860 

19,376 

34,397 

6,915 

6.398 

80, 277 

38,, 550 

37,923 

9,168 

1,161 

967 



Per cent 
of total. 



Average 

per 100 

members. 



410,579 



2a 5 

15.5 

.1 

.3 

.4 

4.4 

7.8 

1.6 

1.6 

18.2 

&7 

&6 

2.1 

.3 

.2 



93.2 



37.8 

24 9 

.2 

.5 

.7 

7.1 

12.6 

2.5 

2.3 

29.3 

141 

13.9 

as 

.4 
.4 



Number. 



150.0 



757, 302 

528,339 

35,527 

29,754 

22,477 

221,866 

487.988 

96,538 

98,500 

676, 702 

472,661 

494, 134 

105,826 

12,720 

16,459 



Per cent 
of total. 



3.W6,793 



17.1 

12.0 

.8 

.7 

.5 

5.0 

11.0 

2.2 

2.2 

lao 

ia7 

11.2 

2.4 

.3 

.4 



Average 
per case. 



A verage 

per 100 

members. 



89.5 



7.3 

7.7 

S4 7 

21.6 

12.1 
U.5 
14 2 
140 
15.4 
7.2 
12.3 

lao 
u.5 

ILO 
17.0 



27a 7 

193.0 

13.0 

10.9 

S.2 

81.1 

178.3 

35. 3 

3&0 

210.7 

172.7 

18a 5 

3a7 

■ 46 

6.0 



9.6 1,445.7 



Total 

Grand total. 



8,240 
21,789 



30,029 



1.9 
49 



&8 



440,608 



100.0 



3.0 
8.0 



11.0 



IGl.O 



03,943 
809,080 



466,023 



4,422,816 



^2 
&3 



11.8 
16.9 



10.5 



15.5 



35.4 
134 9 



170.3 



100.0 



10.0 



1,616.0 



A few of the most important data of this table may well be empha- 
sized here. The number of cases of disability per 100 members was 
161, and the number of sick days per 100 members 1,616, or 1.6 
cases and over 16 days of sickness per member per annum. ' These 
exceedmgly high rates may partly be explained by the unhealthy 
climatic conditions in some parts of Italy; the high frecjuency of 
malaria and other infectious diseases seems to pomt m that du-ection. 
How much the liberal sick benefits act to cause malingery and fraud 
it is, of course, impossible to say. 

Accidents are responsible only for a small part of the loss of time. 
Of all cases of temporary disability only 6.8 per cent were due to 
accidents and 93.2 per cent to sickness, the average duration of the 
accident cases, however, bemg 15.5 days, as against 9.6 days for sick- 
ness, so that accidents were responsible for 10.5 per cent of the loss 
of time. • 

General infectious diseases, malaria, and <liseases of the digestive 
organs were most frequent, these tliree causes claiming 57.2 per cent 
of all cases of disabUity. But these had the shortest average dura- 
tion, so that they claimed only 42.1 per cent of the days of disability. 



> 

I 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1977 

The most important deductions are to be made from the compari- 
son of the data of the seven separate groups. 

The sickness rates vary greatly, the highest being sho\^Ti by the 
engine service (engineers and firemen). Their occupation is, there- 
fore, not only the most hazardous as far as accidents are considered, 
but also the most injurious to the health of the employees. The second 
group, tram service (conductors, picket inspectors, trainmen, and 
brakemen), comes a close second, followed in a descending order by 
the station service (lower grade employees in stations, warehouses, 
and offices, such as watchmen, lampers, oilers, cleaners, and similar 
occupations, but not the workmen in the shops) and office employees. 
The lowest sickness rate is shown by the service of maintenance of 
the way (trackmen, gatemen, etc.), and it is interesting to note that 
the average number of cases of sickness is lower for the female 
employees of this class, though the somewhat longer duration of 
each case of sickness reduces this difference when the number of 
days of sickness per 100 employees is considered. The injurious 
effect of the railroad business upon these employees of either sex is 
slighter, and then- life in the open country gives them a lower sickness 
rate even than the much more highly paid office employees. 

On the whole the same classes of diseases are conspicuous in all 
the groups, namely, infectious diseases, malaria, and diseases of the 
digestive system, except that the female employees show a very 
high rate of genito-urinary diseases, including the specific female 
disorders; nevertheless very interesting differences may be noticed 
on close examination of the data. Thus malaria is much more 
frequent among the maintenance-of-way service and the office 
employees, many of whom are permanently located in malarial 
regions, while the employees of the shop, train, and engine ser\ice 
show a much lower rate of malarial illness. SjT)hilis and genito- 
urinary diseases are most frequent among the engineers and firemen, 
and trainmen (disregarding the high rate of diseases of the latter- 
class among female employees, due to special reasons) and much 
more frequent than among the persons in station service and in the 
maintenance-of-way group, a result of the irregular habits of em- 
ployees, who are frequently obliged to stay away from home, while 
the trackmen, etc., are not subject to such influences. 

In the class of nervous diseases, and again in the diseases of 
respiratory organs, of organs of locomotion, of the skin, and of the 
organs of the sight, the engineers and firemen show the highest rates, 
followed closely by the trainmen, indicating the deleterious effects 
of exposure and mental and physical strain inevitable in these 
occupations. 



1978 



EEPOBT OF THE COMMISSIONER OF LABOE. 



One reason why the figures for sickness as shown in the preceding 
table are so high is that the total duration of the treatment and not 
the ac ual loss of time was given. For comparative purposes, there- 
fore, the following is mtroduced, in which only such illness as le.l to 
actual loss of time is considered. The data extend from 1890 to 
1900, inclusive, but no data were pubUshed for 1892 and 189.3 
Ihe table also gives a comparison between one year and another. 
Ihe two classes of membership are kept separated, so that a com- 
panson between them is possible. 

The sickness rates are found to fluctuate very materially between 
one year and another, the minimum average being 115.2, "the maxi- 
mum average 134.7, and the average loss of tune from 12.3 to 18 I 
days per person. But no tendency to an in<;reased sickness rate or 
ionn°K T '" "^"^'f ^^1«- 0° the contrary, if the very high rate of 
1900 be disregarded, the tendency seems to point throughout the pre- 
ceding decade toward a decreasing sickness rate and loss of time 

A comparison of the sickness rates of the "ordinary" and "aggre- 
gate members fails to disclose any very pronounced difference, 
though the treatment of these two groups by the mutual benefit 
societies was very much different. The "or.Unary" members paid 
on a per diem basis as was shown above, received in addition to all 
medical, surgical, and pharmaceutical assistance also a daily sick 
benefit of one-half their daily wage. The "aggregate" members 
did not receive this benefit from the mutual benefit societies, because 
their salaries being fixed on a monthly or annual basis, were not 
discontinued during illness. During eight of the nine years for 
which data are available, the rate for the "ordinary "J members 
was higher, but for some years the difference is very small For the 
entire period, the rate for the "aggregate" members was 117.6 per 
100 employees, and for the "ordinary" members 126.2 per 100 
employees. This comparison is not very conclusive, however, in 
view of the difference in the occupational distribution of these two 
groups. When comparisons by groups are made the sickness rates 
for ordmary members are found to be very much higher among 
the engmeers and firemen, the train service and the service of main- 
tenance of way, which may be due to the fact that the "aggregate" 
members represent on the whole higher-paid employees, many of 
whom were paid a monthly or annual salary, and so lost no time on 
account of illness. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1979 

CASES OF ILLNESS CAUSING LOSS OF EARNINGS AND DAYS LOST BY MEMBERS 
OF THE MEDITERRANEAN MUTUAL BENEFIT SOCIETY DURING THE YEARS 
1890, 1891, AND 1894 TO 1900, BY BRANCH OF SERVICE AND YEAR. 

[Source: The annual reports of the society.) 



Branch of service and year. 



' OBDINAEY ". MEMBERS. 



Engineers and firemen: 

1890 

1891 

1894 

1895 

1896 

1897 

1898 

1899 

1900 ; 

Train service: 

1890 

1891 

1894 ■ 

1895 

1896 

1897 ' 

1898 

1899 

1900 

Maintenance of way (males): 

1890 

1891 

1894 ■ 

1895 

1896 

1897 

1898 

1899 

1900 

Maintenance of way (females): 

1890 

1891 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

Station service: 

1890 

1891 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

Office force: 

1890 

1891 

1894 

1895 ;■ 

1896 

1897 

1898 

1899 

1900 ;; 

Shop employees: 

1890 

1891 

1894 

1895 

1896 

1897 

1898 

1899 

1900 





Cases of illness. 


Days lost because 


Average 






of illness. 


mirabero 
members 


' 


















Number. 


Per 100 
members. 


Number. 


Per 100 
members. 


382 


1,176 


307.8 


11,495 


3,009.1 


297 


874 


294.3 


8,240 


2,774.4 


377 


880 


233.4 


8,409 


2.230.5 


350 


784 


224.0 


7,368 


2, 105. 2 


341 


765 


224.4 


7,320 


2,149.3 


351 


770 


219.4 


7,146 


2,036.2 


388 


590 


152.1 


6,130 


1,579.9 


422 


660 


156.4 


5,855 


1,387.4 


482 


849 


176.1 


8,350 


1,732.4 


396 


734 


185.4 


7,237 


1,828.0 


347 


1,044 


300.9 


9,743 


2,807.8 


354 


rn 


219.5 


6,516 


1,840.7 


346 


768 


222.0 


6,524 


1,884.7 


403 


917 


227.6 


8,033 


1,993.6 


470 


885 


188.2 


7,842 


1,668.0 


621 


1,010 


162.6 


8.519 


1,371.8 


716 


1,078 


150.6 


9,187 


1,283.1 


849 


1,467 


172.9 


14,275 


1,681.4 


4.383 


4,835 


110.3 


57,030 


1,301.2 


4,639 


4,370 


%.3 


40,442 


891.0 


6,617 


6,785 


120.8 


58,962 


1,049.5 


6,022 


7,225 


119.0 


59,131 


982.1 


6,346 


7,632 


120.2 


66,970 


1,065.2 


6,415 


7,173 


111.8 


59,840 


932.8 


6,237 


7,033 


112.7 


62,074 


995.3 


6,094 


6,551 


107.5 


56,788 


915.5 


6,942 


7,266 


122.3 


66,001 


1,120.8 


1,142 


573 


50.2 


7,449 


€52.3 


1,185 


547 


46.2 


6,601 


567.1 


1,491 


1,124 


75.4 


13,822 


9'27.0 


1,650 


1,225 


74.2 


14,306 


867.1 


1,722 


1,393 


80.9 


15,906 


923.8 


1,658 


1,145 


69.1 


14,578 


878.8 


1,588 


1,082 


68.1 


13,700 


862.7 


1,515 


l.(W4 


68.9 


12,964 


865.7 


1,433 


1,057 


73.8 


13,480 


940.7 


6,495 


8,507 


13L0 


92,697 


1,427.2 


6,603 


10, 115 


153.2 


100.040 


1,515.1 


6,251 


9,295 


148.7 


92.236 


1.475.5 


6,231 


6,265 


100.5 


86,832 


1.393.7 


6,394 


8,920 


139.5 


91.603 


1,432.3 


6,281 


8,325 


132.5 


86,699 


1,380.0 


5,630 


6,902 


122.6 


76.194 


1,353.3 


5,089 


6,992 


137.4 


65.794 


1.292.9 


4,651 


7,692 


165.4 


74,677 


1,606.6 


422 


510 


120.8 


5,943 


1,408.3 


360 


303 


84.2 


3,439 


955.3 


272 


296 


108.5 


3, -223 


l,l»l.9 


239 


191 


79.9 


1,920 


803.5 


264 


294 


114.4 


3.030 


1,147.6 


253 


204 


80.6 


2,215 


865.6 


169 


100 


59.2 


996 


589.4 


130 


84 


64.6 


725 


557.7 


154 


143 


92.9 


1,615 


1,048.7 


4,840 


6,326 


130.7 


85,857 


1,773.9 


4,730 


6,091 


128.8 


79,354 


1,677.7 


4,574 


6,671 


145.8 


79,856 


1.745.9 


4,604 


6,903 


149.9 


75,485 


1,639.1 


4,793 


6,221 


129.8 


69,328 


1.146.2 


4.873 


6,181 


126.9 


63,802 


1.309.0 


4,686 


6,057 


129.0 


66,655 


1,419.4 


4,574 


5,447 


119.1 


60,815 


1.329.6 


4,412 


6,426 


145.6 


69,985 


1,586.2 



^T 



1980 



BEPOBT OF THE COMMISSIONEH OF LABOR. 



J^O^m^ND 1S,4 TO IW,, BY BKANCH OrSEKvlcE'fND ^EA^-^n^^L^"^"* 




MEMBEBS— concluded. 

Total " ordinary " members: 
1890 

1891 ;; 

1894 ■ 

1895 * 

1896 

1897 ■; 

1898 

1899 

1900 



AGGBEOATE" MEMBERS. 



Engineers and firemen: 

1890 

1891 

1894 

1895 

1890 

1897 

1898 

1899 

1900 "'.'.'.'.." 

Train service: 

1890 

1891 

1894 

1895 

1896 

1897 

1898 

1899 

1900 '.'.'.'.'.'.'. 

Maintenance of way: 

1890 

1891 

1894.. ■; 

1895 :.::::: 

1896 

1897 

1898 

1899 

1900 '.'.'.'.['.'. 

Station service: 

1890 

1891 

1894 

1895 

1896 

1897 

1898 

1899 

1900 "'.[" 

Office force: 

1890 

1891 

1894 

1895 

1896 

1897 

1898 

1899 

1900 ...'!."."!."."." 

Total "aggregate" members: 
1890 

1891 .;'; 

1894 

1895 

1896 

1897 

1898 

1899 

1900 



Average 
number of 
members. 



Cases of illness. 



18,060 
18,061 
18,936 
19,442 
20,263 
20,301 
19,329 
18,540 
17,923 



1,462 
1,432 
1,486 
1,452 
1,410 
1,380 
1,343 
1,284 
1,225 

1,531 
1,493 
1,4(50 
1,415 
1,377 
1,341 
1,290 
1,232 
1,171 

3,874 
3,753 
3,389 
3,282 
3,175 
3,074 
2,970 
2.861 
2,738 

6,3C3 
6,170 
5,340 
5,178 
4,965 
4,786 
4,593 
4,390 
4,083 

562 
549 
518 
407 
422 
395 
378 
377 
473 

13,792 
13,399 
12, 193 
11,734 
11,349 
10,976 
10,574 
10, 144 
9,690 



Number. 



22,661 
23,344 
25,827 
2;J,361 
2«i, 142 
U4,683 
22,774 
21,856 
24,900 



2,860 
2.951 
2,899 
2.872 
2.394 
2,174 
2.401 
2.077 
2,203 

2,163 
1.822 
1,847 
1.698 
1.491 
1.307 
1.393 
1,285 
1,437 

3,970 
3.140 
3.186 
2,547 
2.664 
2,499 
1.968 
2, 526 
2,609 

9.108 
7,155 
6.475 
6.192 
5.524 
5,254 
6.641 
5,466 
5.596 

757 
634 
324 
304 
291 
233 
269 
201 
448 

18.858 
l5,tK)2 
14,732 
13,613 
12,364 
11,467 
11,672 
11,555 
12,293 



Per 100 
members. 



Days lost because 
of illness. 



Numl*er. 



125.5 
129.2 
136.4 
120.2 
128.6 
121.5 
117.8 
117.9 
138.9 



195.6 
205.8 
195.1 
197.8 
169.7 
157.7 
178.8 
161.8 
179.8 

141.3 
122.0 
126.5 
120.0 
108.2 
96.0 
108.0 
104.3 
122.7 

102.5 
83.7 
94.0 
77.6 
83.9 
81.3 
66.3 
88.3 
95.3 

143.1 
116.0 
121.3 
119.5 
111.3 
109.8 
122.8 
124.6 
137.1 

134.7 
97.3 
62.5 
74.7 
69.0 
59.0 
71.2 
53.3 
94.7 

136.7 
116.4 
120.8 
116.1 
108.9 
104.5 
110.4 
113.9 
126.9 



Per 100 
mwnbers. 



267,708 
247,859 
263,014 
251,566 
262,199 
242.122 
234,368 
211,128 
248,983 



31.468 
33,653 
32, 164 
29,5;i9 
26.486 
26.922 
27.307 
27 174 
26,5«7 

20,9.13 

18, 4N1 
18,447 
20,130 
17.003 
15,377 
15,9.38 
15, 896 
17,3»6 

46, 564 
37,862 
35.2MI 
33,777 
33,208 
33, 17S 
24,285 
31. iU 
32,979 

101,112 
77,281 
72,962 
71,149 
61,037 
61,796 
61,897 
06,040 

69, am 

5,996 

5,9;iy 

3,6-20 
3,556 
3,364 
3,680 
2,638 
2,282 
4,563 

206,073 
173,216 
162,474 
158,151 
141,698 
140,959 
132,065 
142,806 
151,061 



1,482.3 
1,372.3 

1,389.0 
1,294.1 
1.293.7 
1,192.0 
1,212.0 
1,138.8 
1,389.2 



3, 152. 4 
2,346.8 
a, 164. 5 
2,034 
1,878 
1,951 
2,033 
2, 116. 
2, 170. 



1,367.3 
1,237.9 
1.263.5 
1,423.0 
1,277.0 
1,129.0 
1,235.5 
1,290.3 
1,484.7 

1,202.0 
1,008.9 
1,041.0 
1 . 029. 8 
1.045.6 
1.079.0 
817.7 
1.098.0 
1.204.5 

1.589.1 
1.252.5 
1,366.3 
1.374.9 
1.229.1 
1.291.0 
1,347.6 
1,504.3 
1,703.3 

1.066.9 
1,081.8 
698.8 
873.8 
797.1 
933.1 
697.9 
605.3 
969. G 

1, 494. 2 
1,292.8 
1,532.5 
1,348.4 
1,249.3 
1,283.0 
1,349.0 
1,407.8 
1,559.9 






CHAPTEB VII. WOBKMEN's INSURANCE IN ITALY. 1981 

CASES OP ILLNESS CAUSING LOSS OF EARNINGS AND DAYS LOST BY MEMBERS 
OF THE MEDITERRANEAN MUTUAL BENEFIT SOCIETY DURING THE YEARS 
1890, 1891, AND 1894 TO 1900, BY BRANCH OF SERVICE AND YEAR-Concluded 



Branch of service and year. 



ALL MEMBERS, 

1890 

1801 

1894 

1895 '; 

1896 

1897 

1898 

1899 

1900 ■ 



Average 
number 

of 
members, 



31 
31 
31 
31 
31 
31 
29 
28 
27 



,852 
,460 
,129 
,176 
,612 
,277 
,903 
,684 
,613 



Cases of illness. 



Number. 



41.519 
38.946 
40,559 
. 36,974 
38,506 
36,150 
34,446 
33,411 
37,193 



Per 1,00 
memlMas. 



Days lost because 
of illness. 



130.3 
123.8 
130.3 
118.6 
121.8 
115.5 
115.2 
116.5 
134.7 



Numb^. 



I PerlOO 
iiuembers. 



473,781 


1.487.4 


421,075 


1,338.4 


425,488 


1,366.8 


409.717 


1,314.0 


408,897 


1,277.8 


383.081 


1,225.0 


366,333 


1,225.0 


353.934 


1,233.9 


400,034 


1,81L2 



Pensions.— The total number of current pensions of the mutual 
benefit societies are shown as far as data are available in the following 
table. The average pension from 1901 to 1907 is seen to be only 
$81.71, and in the earlier years even smaller. In judging of the 
amount it is necessary to point out that the averages were materially 
influenced by the very small widows' and orphans' pensions. As 
has ah-eady been explained, the mutual benefit societies did not 
grant any new pensions to widows and orphans from 1891 to 1904, 
inclusive, and the current pensions had been granted by the Alta 
ItaUa Raih-oad Mutual Benefit Society prior to the reorganization 
in June, 1890. These pensions were exceedmgly small, averaging 
usually $18 for widows and S7 per annum for orphans. The number 
of these pensions was rapidly declining, the widows' and orphans' 
pensions granted since 1905 being much larger, though not any too 
large, even considermg the Itahan standard of livmg. 

Another considerable class of very small pensions is found in those 
granted to the "aggregate" members, in order to increase their pen- 
sions received from the pension funds to 365 fire ($70.45). 

All these factors influence the average amount of the pensions 
paid by the mutual benefit societies. The average pension of a 
member within recent years was over $90, and in the Mediterranean 
fund over $100. The seeming drop m 1907 is due to the fact that 
the '^ supplementary" pensions of "aggregate" members are not 
stated separately, but together with the pensions of the "ordinary" 
members, which decreases the average. 



1982 



KEPOET OF THE COMMISSIONER OF LABOE. 



NUMBER AND AVERAGE OF PENSIONS PAID BY THE MUTUAL BENEFIT SOCIETIES 

IN SPECIFIED YEARS, BY SOCIETY AND YEAR. SOCIETIES 

[Source: The annual reports of the society.] 



Society and year. 



Pensions paid to— 



'Ordinary" 
members. 



Adriatic society: 

^ 1890 

1891 

1892 

1901 

1902 

1903 

1904 

1905 

1906 

1907 ;; 

Mediterranean society: 

' 1890 ^ 

1891 '"" 

1892 

1893 

1894 ■" 

1895 ;■.■■" 

1896 

1897 

1898 ' ■ 

1899 ." 

1900 

1801 

1902 

1903 

1904 

1906 

1906 

1907 ;;; 

Sicilian society: 

1901... 

1902 

1903 

1904 

1905 

1906 

1907 ;;;;; 

Total societies: 

1901 

1902 

1903 

1904 

1905 

1906 

1907(c) 

1907(d) 



Num- 
ber. 



1,648 
1,897 
2,392 
3,489 
3,605 
3,749 
3,756 
3,742 
3,664 
a 3, 776 

1,262 
1,535 
1,642 
1,776 
1,837 
1,903 
1,933 
1,966 
1,9% 
2,035 
2,048 
2,106 
2,120 
2,145 
2,227 
2,235 
2,201 
o2,395 

631 
650 
668 
692 
659 
635 
628 

6,226 
6,375 
6,562 
6,675 
6,636 
6,500 
o6,799 
o6,841 



Aver 
»ge. 



162 
66 
72 
88 
88 
88 
89 
89 
90 
• 87 

74 
83 
87 
91 
93 
94 
95 
95 
97 
96 
98 
99 
'99 
99 
100 
101 
101 
a 93 

59 
60 
60 
61 
63 
69 
o69 

89 

89 

89 

89 

91 

91 
o87 
a 89 



"Aggregate" 
members. 



Num- 
ber. 



75 
92 
101 
152 
153 
150 
146 
140 
136 
C) 

116 
129 
136 
144 
147 
151 
168 
179 
205 
217 
239 
244 
243 
237 
237 
231 
220 
(ft) 



Aver' 
age. 



Widows. 



tn 

11 
11 
9 
9 
9 
9 
9 
9 
(ft) 

13 
13 
13 
13 
13 
13 
13 
13 
13 
13 
12 
12 
12 
12 
12 
12 
12 
(ft) 



Num- Aver- 



ber. 



3% 
396 
387 
383 
371 
356 

(ft) 

ft) 



11 
11 
11 
11 
11 
11 
(ft) 
(ft) 



249 
241 
228 
147 
138 
130 
124 
147 
216 
225 

510 

493 

460 

437 

416 

395 

383 

371 

334 

323 

304 

286 

279 

273 

261 

287 

349 

371 



age. 



Orphans. 



3 
18 
24 

433 
417 
403 
385 
437 
583 
620 
697 



S19 
19 
19 
18 
18 
18 
18 
25 
34 
37 

18 

18 

18 

18 

18 

18 

18 

18 

18 

18 

18 

18 

18 

18 

18 

21 

31 

33 



Num- Aver- 
ber. age. 



17 
15 
13 



Total 
pensions. 



Num- 
ber. 



Aver- 
age. 



$6 
6 
6 



4 

10 
11 

15 
11 
10 
8 
6 
6 
6 
3 
3 
1 
1 
1 



I 



53 
49 

51 

18 
18 
18 
18 
23 
33 
35 
38 



25 
28 
26 

6 

7 
7 
7 
7 
7 
7 
7 
7 
7 
7 
7 



3 
14 
14 



22 
29 
32 



o Including pensions to "aggregate" members. 
" Included m pensions to "ordinary" members. 



7 
25 
26 
67 



31 
31 



24 
29 
30 
19 



1,989 
2,245 
2,734 
3,788 
3,896 
4,029 
4,026 
4,033 
4,026 
4,012 

1,903 

2,168 

2,248 

2,365 

2,406 

2,455 

2,490 

2,519 

2,538 

2,576 

2,592 

2,637 

2,642 

3,655 

2,725 

2,756 

2,784 

2,780 

631 
650 
668 
692 
662 
654 
653 

7,056 
7,188 
7,352 
7,443 
7,451 
7.464 
7,445 
7,605 



$54 
59 
65 
82 
83 
83 
84 
84 
84 
84 

55 

64 
68 
73 
75 

77 
77 
78 
79 
80 
80 
82 
82 
83 
84 
85 
85 
84 

59 
60 
60 
61 
63 
68 
69 

80 
80 
81 
82 
83 
83 
83 
83 



« First six months. 

* Last six months; united society 



FinaUy, it must be pointed out that women (in the service of 
maintenance of way) constituted a certam proportion of the pen- 
sioners because in the Alta Italia Raih-oad Mutual Benefit Society 
women were granted pensions until after the reorganization of 1890 
since which they received lump-sum benefits only. 

These pensions to women, which were proportionate to their sal- 
aries, were very small and influenced the average for the pensioners 
tor some years the pensioners could be separated by sexes, and the 
pensions for each sex are shown in the following table: 



CHAPTER Vll. workmen's INSURANCE IN ITALY. 



1983 



NUMBER AND AVERAGE OF PENSIONS PAID TO "ORDINARY" MEMBERS OF THK 

6?tS;^™ ''''''''^'' BENEFIT SOCIETY, 1893 TO 1903, AND OF THE MEDITERRANEAN 
MUTUAL BENEFIT SOCIETY, 1891 TO 1906, BY SEX. ^r-i^iXi^KKA.Nt.AN 

[Source: The annual reports of the societies.) 



Society and year. 



Adriatic society: 

1893 

1894 

1895 

1896 

1897 

J898 

1899 

1900 

1901 

1902 

1903 

Mediterranean society: 

1891 

1892 

• 1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1908 

1904 

1905 

1906 



Pensions paid to "ordinary" members. 



Males. 



Females. 



Total. 



Number. 



2,114 
2,333 
2,447 
2,573 
2,741 
2,822 
2,981 
3,182 
3,313 
3,433 
3,589 

1,300 
1,417 
1,561 
1,626 
1,702 
1,738 
1,775 
1,815 
1,860 
1,880 
1,949 
1,971 
2,007 
2,093 
2,118 
2,099 



Average. 



S84 
85 
87 
89 
90 
90 
90 
92 
92 
92 
91 

95 
98 
101 
102 
103 
103 
103 
104 
104 
104 
105 
105 
104 
105 
105 
105 



Number. 



237 
232 
219 
213 
202 
194 
190 
185 
176 
170 
158 

235 
225 
215 
211 
201 
195 
191 
181 
175 
168 
157 
149 
138 
134 
117 
102 



Average. , Number. ! Average. 



$17 
17 
17 
17 
17 
17 
17 
17 
17 
17 
17 

21 
21 
21 
21 
20 
20 
20 
20 
20 
20 
20 
20 
20 
20 
20 
20 



2,351 
3,565 
2,666 
2,786 
2,943 
3,016 
3,171 
3,367 
3,489 
3,503 
3,747 

1,535 
1,642 
1,776 
1,837 
1,903 
1,933 
1,966 
1,996 
2,035 
2,048 
2,106 
2,120 
2,145 
2,227 
2,235 
2,201 



177 
57 
81 



81 



87 
SI 

n 

M 

S5 

95 

97 

96 

97 

99 

99 

99 

100 

101 

101 



In view of the great differences in salaries a better understanding 
of the pensions granted by the mutual benefit societies is obtained by 
studymg them by separate branches of the service. The following 
table shows the number, amount, and average of pensions granted each 
year by the Adriatic Mutual Benefit Society from 1890 to 1903 and 
by the Mediterranean Mutual Benefit Society from 1890 to 19oi, by 
the main groups of railroad employees. 

The number of pensions granted to employees in the first, second, 
and fifth groups (engineers and firemen, trainmen, and oflice em- 
ployees) were so small that it was not thought necessary to show 
them separately. 

No invalidity pensions were granted to the female employees as 
the constitution provided only for lump-sum benefits. 

The pensions appear to have been larger in the Mediterranean 
society due to higher wages paid by the Mediterranean RaUroad 
In both societies a tendency to smaller pensions is noticeable, thoucrh 
the fluctuations from year to year are considerable. ^^ 

The comparison between the various occupational groups is 
particularly important. The shop employees receive larger pensions 



■I 



1984 



BEPORT OF THE COMMISSIONER OF LABOR. 



I ^ 



than either the employees in the maintenance-of-way class or in the 
station service. This is partly due to higher wages and partly, 
probably, to longer service. t J> 

^^^rSf," ^'^^ AVERAGE OF PENSIONS GRANTED EACH YEAR BY THE ADRTAtip 

[Source: The annual reports of the societies.] 



Society and year. 



Adriatic society: 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 '.'.'.'.'.'.'. 

Mediterranean society; 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 ." 

1900 

1901 



Pensions granted each year to— 



Maintenance-of- 
way employees 
(male). 



Num- 
ber. 



123 
169 
320 
66 i 
130 ! 
100 
103 
138 , 
104 ; 

135 1 

136 , 
117 
116 
200 

78 
90 
75 
68 
49 
52 
39 
47 
52 
56 
47 
67 



Aver- 
age. 



$78 
75 
75 
78 
70 
74 
78 
72 
74 
73 
78 
71 
69 
70 

94 
96 
91 
89 
89 
80 
81 
84 
72 
74 
82 
70 



Station and 

yard service 

employees. 



Num- 
ber. 



Aver- 
age. 



96 
93 

199 
89 

118 
78 
66 
94 
47 
96 
92 
93 

117 

105 

104 
161 
88 
64 
38 
68 
57 
60 
SO 
80 
56 
56 



S96 

101 

96 

102 

101 

101 

101 

90 

92 

99 

105 

98 

94 

87 

111 

109 

100 

101 

112 

95 

102 

99 

97 

96 

90 

96 



Shop em- 
ployees. 



Num- 
ber. 



110 
59 
70 
50 
07 
62 
85 
09 
55 
74 
125 
76 
50 
51 

87 
94 
51 
Ills 
47 
4:^ 
40 
37 
59 
27 
77 
84 



Aver- 
age. 



All other. 



Num- 
ber. 



S132 
136 
142 
115 
133 
133 
148 
124 
129 
124 
130 
122 
119 
126 

152 
141 
143 
148 
146 
141 
156 
147 
157 
142 
137 
146 



6 

7 

21 

17 

7 

10 

12 

6 

8 

6 

15 

7 

14 

8 

13 
16 
16 

8 

6 
11 
10 

3 

5 

8 
11 

8 



Aver- 
age. 



$132 
120 
120 
136 
137 
120 
142 
150 
12» 
105 
134 
132 
127 
118 

142 

148 
1&3 
145 
143 
137 
141 
10.3 
100 
120 
95 
119 



Total. 



Num- 
ber. 



335 

328 
610 
222 
322 
250 
266 
307 
214 
311 
368 
293 
297 
3f54 

282 
361 
233 
24 S 
140 
170 
146 
147 
16*$ 
171 
191 
21.1 



Aver- 
age. 



$102 
91 
91 

100 
96 
99 

109 
91 
94 
94 

104 
94 
90 
84 

120 

116 
111 
120 
117 
106 
107 
105 
112 
97 
107 
108 



Lump-sum Benefits.-Iii case of retirement because of disability 
before fifteen years of membership, the employee received only a 
lump-sum payment, as explained above, <lepending upon his length 
ot membership, with a minhnum of two months' pay. I'he female 
employees, all belonging to the maintenance-of-way service, received 
only such lump-sum benefits. As the following table shows, these 
lump-sum benefits were very small, especially so in the case of the 
female employees. But these latter constituted by far the greater 
part of all persons receiving such lump-sum benefits, very few of the 
other groups retirmg before the necessary fifteen yeai^ have elapsed. 

Ihe average sum paid to the female employees varied in the differ- 
ent years from $17 to $32. In other branches of service these 
amounts were larger; and the largest lump-sum benefits, as well ^ 
the largest pensions (outside of the few office employees), were paid 
to the shop workers. ' ^^ i 



\ 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1985 

NUMBER AND AVERAGE OF LUMP-SUM RETIREMENT BENEFITS PAID TO MEMBERS 
BY THE ADRIATIC MUTUAL BENEFIT SOCIETY. 1S90 TO 1903, AND BY THE MEDITER- 
RANEAN MUTUAL BENEFIT SOCIETY, 1890 TO 1901, BY BRANCH OF THE SERVICE. 

[Source: The annual reports of the societies.] 



Socioty and year. 



Adriatic society: 

1S90 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

Mediterranean society: 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 



lAunp-sum retirement benefits paid to- 



Main te- 
nanoe-of* 

way 
employees 

(males). 



Num- 
ber 



6 

5 

8 

8 

11 

18 

12 

9 

3 

2 

5 

4 

5 
8 
5 
8 
1 
3 
6 
13 
11 
6 
4 
8 



Aver 
age. 



$78 



40 
25 
55 
46 
M 
48 
66 
56 
32 
66 
66 
74 

32 
46 
63 
52 
133 
52 
30 
60 
47 
48 
48 
70 



Mainte- 
nanoe-of- 

way 
employees 

(females). 



Station- 
service 
employees. 



Num- 
ber. 



79 
78 
123 
22 
25 
39 
28 
31 
34 
36 
18 
22 
22 
14 

36 
68 
70 
89 
52 
63 
57 
59 
54 
61 
76 
78 



Aver- 
age. 



$22 
25 
22 
25 
28 
27 
28 
28 
27 
31 
28 
31 
31 
32 

24 
26 
24 
22 
20 
19 
17 
21 
20 
19 
23 
24 



Num 
ber. 



5 

9 

11 

14 

7 

10 

12 

6 

8 
10 
11 

8 
11 

26 
10 
14 
12 
9 
10 
11 
14 
29 
20 
25 
20 



Aver- 
age. 



Shop em- 
ployees. 



$68 
71 
56 
78 
80 
87 
80 
66 
72 
68 
84 
82 

112 
93 

55 
46 
56 
65 
50 
53 
64 
64 
68 
78 
67 
76 



Num- 
ber. 



6 
9 

10 
7 
7 

14 
1 
3 

12 
6 
4 
4 
6 
3 

27 

21 

6 

17 

1 

9 

IG 

21 

15 

10 

10 

15 



Aver- 
age. 



All others. 



$126 

82 

117 

122 

125 

120 

210 

82 

100 

1% 

130 

86 

177 

lOS 

r.2 

64 

59 

61 

112 

101 

91 

113 

132 

106 

150 

135 



Num- 
ber. 



TotaL 



3 
1 
3 
6 



Aver- Num- Aver* 



age. 



$28 

235 

54 



ber. 



22 

47 

146 



204 



112 



47 
46 
45 
25 
53 



130 

76 

97 



92 
»S 
151 
50 
47 
69 
51 
C6 
64 
60 
35 
39 
42 
32 

05 

112 
97 

127 
64 
85 
90 

107 

112 
98 

lis 

128 



a«e. 



$34 

as 

33 
54 
55 
M 
54 
46 
52 
53 
5S 
53 
73 
63 

41 
38 
33 
33 
28 
33 
37 
49 
53 
41 
45 
53 



As explained in the analysis of the constitution, the mutual benefit 
societies, in distinction from the pension funds, did not pay any 
pensions to dependent families of deceased members until after 1905. 
Instead a lump-sum benefit was granted in such cases, as explained 
in a preceding paragraph. The number and average amounts of 
such death benefits are shown for the two largest societies and for 
the same periods to which the previous tables refer and separately 
for the, larger tliree occupational groups. No such benefits were 
given to families of deceased female members, and 011I3' a few to the 
members of the higher wage groups who were rapidly being trans- 
ferred to the pension funds, and therefore showed lower death rates. 
The average amounts of such benefits were somewhat higher than 
the average annual amounts of pensions. They did not represent 
an amount sufficient to insure economic security of the family for 
any length of time, but represent a sufficiently high amount to tide 
the family over the immediate difficulties accompanying the death of 
the father. 



1986 



BEPORT OF THE COMMISSIONER OF LABOR. 



A considerable increase in the average amount of the death benefit 
may be noticed for aU the groups. This is explained, however, by 
the discontinuance of new admissions after January 1, 1897, which 
operated to gradually raise the average age at death 'and also the 
average length of service at death, upon which the amount of the 
death benefit depends. Thus in 1894 there were 39 deaths of mem- 
bers under 35 and in 1903 only 4 such deaths. The av(>rage death 
benefit in case of such early death was naturally very small. Thus 
in 1896 these 35 families received only $1,855, or only $53 per family 
while 31 families of members dying at the age of 50 or OTer received 
$4,426, or $143 per family. 

NUMBER AND AVERAGE OF LUMP-SUM BENEFITS PAID TO FAMILIES OF nFPFAQvn 
MEMBERS BY THE ADRIATIC MUTUAL BENEFIT SotlETY, fs^ t"i9^ AND B^^^^^ 

[Source: The annual reports of the societies.] 





Lump-sum benefits paid to families of— 






Society and year. 


Maintenance- 

of-way 

employees 

(males). 


station-serv- 
ice employees 


Shop em- 
ployees. 


All others. 


Total. 




Num- 
ber. 


Aver- 
age. 


Num- 
ber. 


Aver- 
age. 


Num- 
ber. 


1 

1 Aver- 
age. 


Num- 
ber. 


Aver- 
age. 


Num- 
ber. 


Aver- 
age. 


Adriatic society: 
1890 


44 
57 
64 
59 
56 
69 
60 
42 
42 
43 
46 
46 
43 
36 

62 
63 
53 
49 
56 
77 
59 
52 
54 
59 
57 
65 


S83 
78 
79 
70 
74 
71 
83 
71 
67 
82 
73 
92 
100 
103 

68 
67 
64 
65 
69 
72 
68 
62 
69 
83 
73 
84 


66 
59 
54 
53 
45 
53 
43 
49 
61 
57 
50 
54 
60 
44 

59 
41 
55 
64 
48 
39 
51 
36 
43 
47 
49 
39 


$80 

93 

84 

86 

83 

107 

87 

114 

103 

111 

124 

126 

136 

143 

89 
70 
84 
72 
83 
87 

no 

88 
109 
101 
113 
119 


22 
24 
24 
29 
16 
29 
20 
27 
22 
16 
31 
23 
22 
15 

29 

41 

46 

38 

32 

33 

29 

31 

48 

45. 

37 

32 


1150 
146 
160 
155 
154 
154 
156 
175 
159 
150 
167 
165 
196 
191 

121 
127 
126 
141 
139 
159 
132 
140 
176 
210 
213 
196 


12 
5 
7 

14 
5 

12 

11 
9 
7 
8 

11 

11 
8 

10 

5 
9 
6 
4 
7 
7 
1 
4 

11 
7 

13 

15 


$92 

73 

97 

92 

92 

94 

148 

165 

129 

155 

113 

157 

161 

179 

112 
114 

85 
200 

97 

74 
226 
107 
133 
112 

98 
136 


144 
145 
149 
155 
122 
163 
134 
127 
132 
124 
138 
134 
133 
105 

155 
154 
IGO 
155 
143 
156 
140 
123 
156 
158 
156 
151 




1891 


$92 


1892 


95 


1893 


95 


1894 


93 


1895 


90 


1896 


100 


1897 


101 


1898 


117 


1899 


102 


1900 


108 


1901 


116 


1902 


124 


1903 


136 


Med iterranean society : 
1890 


140 


1891 


87 


1892 


86 


1893 


89 


1894 


90 


1895 


91 


1896 


94 


1897 


98 


1898 


91 


1899 " ""■ 


118 


1900 


123 


1901 ' ""' 


119 




121 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1987 

Until 1905, in case of death of pensioners, the family of the deceased 
.was not entitled to the continuous pension, but only to a lump sum. 
^The minimum of such lump-sum benefit was, according to the con- 
stitution of 1902, four times the monthly benefit of the pensioner. 
As the following table indicates, the average amount of this benefit 
varied since 1893 between $36 and $73. It did not represent, there- 
fore, more than a funeral benefit and a small sum to tide over the 
first difficulties of the situation. By the law of 1905, embodied in 
the society's constitution of 1907, the widows of pensioners receiving 
their pensions since 1905 were granted the continuation of the pen- 
sion. Data concerning the application of this paragraph are not 
available. 

NUMBER AND AVERAGE OF LUMP-SUM BENEFITS PAID TO FAMILIES OF DECEASED 
PENSIONERS BY THE ADRIATIC AND BY THE MEDITERRANEAN MUTUAL BENEFIT 
SOCIETIES, 1890 TO 1903. 

[Source: The amiual reports of the societies.] 





Lump-sum benefits paid to families of 
deceased pensioners by 

— 


Year. 


Lump-sum benefits paid to families ol 
deceased x>ensfoners by — 


Year. 


Adriatic society. 


Mediterranean so- 
ciety. 


Adriatic society. 


Mediterranean so- 
ciety. 




Number. 


Average. 


Number. 


Average. 


Number. 


Average. 


Number. Average. 


1890 

1891 

1892 

1893 


10 
18 
34 

(«) 

(«) 

(«) 
(a) 


$112 

104 

79 


3 

16 
29 
39 
25 
32 
41 


$85 

142 
100 

62 

73 

50| 

BO 


1897 

1898 

1899 

1900 

1901 

1902 

1903 


48 
59 
64 
76 
74 
96 
120 


$58 
45 
52 
36 
46 
38 
46 


41 
43 
44 

60 
60 

(«) 
(«) 


fl9 
M 
M 
» 

m 


1884 




1895 




1896 















a Not reported. 

Finances.— The general review of the finances of the three mutual 
benefit societies for the period of 18 years since their first reorganiza- 
tion in 1890 very plainly shows their financial weakness. The reor- 
ganized funds started on January 1, 1890, with a surplus fund of 
$1,863,702, accumulated in the preceding period when their retire- 
ment benefits were rather small. But as the average age of the mem- 
bers increased and the number of retirement benefits grew the annual 
surplus decreased, and by 1892 was changed to a large and growing 
deficit. Thus between 1892 and 1905 more than two-thirds of the 
assets of the mutual benefit societies had dwindled away. Only the 
material increase in rates in 1906 had evidently saved these funds 
from financial difficulties. The causes for this appear more clearlv 
in the following tables, which give the financial reports for the years 
1902 to 1907: 



' t 



I' I 

IS:' i 



.. f 



1988 REPORT or THE COMMISSIONER OF LABOR. 

FINANCES OF THE MUTUAL BENEFIT SOCIETIES, 1890 TO 1907 
[Source: The annual reports of tlie societies.] 



Society and year. 



1890... 

1891... 

1892... 

1893... 

1894... 

1895... 

1896... 

1897... 

1898... 

1899... 

1900... 

1901 . . . 

1902... 

1903... 

1904... 

1905... 

1900... 

1907 (a) 

1907(6) 

1907.... 



Income. 



1607,286 
651,786 
602,604 
618,666 
621, 007 
631,404 
640,669 
632,058 
618, 957 
617.318 
619.548 
618, 004 
680,164 
647,884 
678,854 
658, 379 
921,750 
577,523 
465,125 
1,042,648 



Expendi- 
tures. 



$438,774 
511,717 
622,963 
643,941 
647,381 
687,918 
709,489 
729,991 
743,441 
750.402 
804.849 
818,511 
803,409 
811,332 
803,079 
812,832 
810,709 
403,235 
420,345 
823,580 



a First six months. 



Surplus. 


Deficit. 


$168,512 
140,069 




$20,859' 

25,275 

26, 374 

66, .M 4 

6.S,«20 

97,933 

124,484 

133, 084 

18.\301 

200,507 

123,345 

163,448 

124,225 

154, 453 
























111,041 


174,288 




44,780 




219,068 









Assets at end 
of year. 

$2,032,214 

2, 172, 283 

2, 151, 924 

2,126,649 

2, 100, 275 

2,043,761 

1,974,941 

l,877,a« 

1.752,5'i4 

1,619,440 

1,434,139 

1,233, 6?<2 

1,110,3M7 

946,939 

822,7)4 

668. 2«H 

779, » 12 

953,590 

998, 370 

998, 370 



b Last six months; united fund. 

The sources of revenue of the mutual l)enefit societies, as of the 
pension funds, consist of the following main sources: Contribution, 
of the members contributions of the railroads, regular sources of 
revenue established by the constitution, and interest and profits 
from mvestment. As appears from the following tables, the mem- 
bers contributions in 1906 constituted about one-fourth (25 2 per 
cent) of the total, the direct contributions from the railroads over 
one-h.alf (51.7 per cent), the indirect contributions, includiua the 
reimbursements for accident compensation, nearly one-fifth (IHS per 
cent) and the income from interest and investments was very small 
only 3.7 per cent, because of the low reserve. In view of the rapid 
decline of the reserve, the necessity for increasing the current revenues 
of the funds wa^ keenly felt. The lower level of the wages of those 
employees who held membership in these .societies, as compared with 
that of the members of the pension funds, previously describe.l, pre- 
cluded the possibility of increasing the members' contributions, and 
the railroads were therefore forced by law to increase their share. 
On October 21, 1902, these contributions were increased from 3 per 
cent of the salaries paid to 4.2 per cent, and on January 1, 1906 fur- 
ther mcreased to 8.15 per cent, i. e., nearly .loubled. As a result the 
total contributions of the railroads more than doubled between 190'> 
and 1906, notwithstanding the decline in the memberslii.,. In 190'' 
these direct contributions of the raiboads represented only 26 6 per 
cent, or a httle over one-fourth of the tot.d income, as against 51 7 
per cent in 1906. The study of the table giving the expenditures 
.by mam items explams the reason for these difficulties. Pensions 
represented the main item, though officialK- designated bv the name 
of continuous benefits, and though they were given onh' for retire- 
ment because of invalidity, and not for old age alone. The total 
expenditures for retirement pensions did not show such a rapid 
mcrease as m the case of the pension funds, but they were stUi 



CHAPTER VII.— WORKMEN 'S INSUBANCE IN ITALY. 1989 

increasing in 1906, being in that year 7 per cent greater than in 1902 
Ihus, notwithstanding the existence of these mutual benefit societies 

,o«,"T ^^ ?^^^^' ^""^ ^^^ discontinuance of new admissions since 
1897, the societies have not yet reached the state of equilibrium where 
the granting of new pensions would be entirely offset by the discon- 
tinuance of old ones. As was shown in one of the preceding tables 
the number of current pensions was still increasing in 1907 and so' 
WM the average amount of pensions because of the increase ii wages 
While the latest mcrease of the railroad contributions from 4 2 per 
cent to 8.15 per cent of the salaries did overbalance the deficit and 
produce a shght surplus, the mutual benefit societies were not yet put 
upon a sound financial basis thereby. For with the continued 
increase of pensioners and the decrease of active members, producin.^ 
a fall in the revenues, the small surplus was likely to be a.'ain con- 
verted into a deficit in the near future. If a technical balance of the 
mutual benefit societies were struck, it would show that the members 
through their long membership had acquired rights for invalidity 
pensions, thus creating a large actuarial liability with practically no 
reserve to cover it. At the same time a new source of liabilities was 
created by the provision of the law of 1905 establishing pensions for 
widows of members dying after July 1, 1905, and for widows of pen- 
sioners who had received their pensions after that date 

In the earUer years the expenditures for pensions for widows were 
on account of old pensions granted before January 1, 1890, to widows 
of members of the old Alta Italia Mutual Benefit Societv, mer-^ed 
partly with the Adriatic and partly with the Mediterraneai, Socie"tv 
But since 1905 the number and cost of widows' pensions show an 
increase. 

If it were not for the entire change of the pension system the cost 
of widows pensions would rapidly have assumed large proportions. 

INCOME AND EXPENDITURES OF THE MUTUAL BENEFIT SOCIETIES, W. TO 1907. 

[Source: The annual reports of the societies.] 
INCOME. 



Source of income and item of exi)endilure. 



Contributions of members: 
"Ordinary" members.. 
"Aggregate" members. 



1902. 



Total. 



Direct contributions of raiboad 
Indirect contributions of railroad: 
Unclaimed overcharges on freight 
Fines ■ 

Repayments for accidents. '. 

Another 



$175,846 
23,369 



Total 

Interest and investment. 
Another 



Grand total . 



199,215 

181,065 

87,381 
25,163 
28,838 
11,209 



1903. 



$203,526 
22,661 



226, 187 



1904. 



$199,018 
21,439 



1905. 



1906. I 1907.(a) 



$197,043 
20,541 



$211,647 
21,079 



220,457 



152,591 

146, 747 

546 



680.164 



243,991 

57,299 
17,814 
27,395 
11,024 



113,532 

63,682 

492 



238,851 

73,558 

18,597 

35,881 

7,552 



217,584 232,726 



$108,249 
10.703 



118,952 



13.5, 588 
64,130 
19,528 



647,884 678,854 



236,473 

54,383 

17, 169 

25,807 

8,054 



105, 413 
65,543 
33,366 



658, 379 



476, 144 

102,707 
18,809 
36,773 
10,223 



340,306 

54,500 

12. 7tV4 

22.941 

4,612 



168,512 
33,760 
10,606 



921,750 



94,817 

18,072 

1,186 



ft 573.333 



J For first six months only, 
origiii^'freport.^' *''''' ^''' '^° '^' '""'^^ ^^«^'° «° P=^«« 19^8; the figures are given as shown in the 



1990 



REPORT OF THE COMMISSIONER OF LABOR. 



INCOME AND EXPENDITURES OF THE MUTUAL BENEFIT SOCIETIES. 1902 TO 1907- 

Concluded. 

EXPENDITURES. 



Source of income and item of expenditure. 



Temporary disability benefits: 

Sick benefits 

Physicians' fees, expenses ' etc! 
Medicines, appliances, etc.. 



1902. 



Total. 



Retirement benefits: 

Pensions 

Lump sums 



Total. 



123,208 
34,391 
20,603 



1903. 



89,188 
31,214 
13,625 



178,202 



557,130 
8,650 



Death benefits: 

Pensions to widows 

Lump sums to families of members 
Lump sums to families of pensioners" 
Funeral benefits.... 



565,780 



Total. 



Payments to pension fund 
All other 



Grand total. 



7,186 

36,670 

6,914 

2,806 



134,027 



567,058 
6,186 



1904. 



87,668 
25,304 
10, 162 



1905. 



572,244 



53,576 

4,979 
872 



803,409 



6,771 

35,819 

8,384 

2,818 



53,792 

50,175 
1,094 



123,134 



690,964 
6,094 



110,070 
22,319 
10, 177 



19<)6. 



105. 909 
22.890 
U.397 



1907. o 



142,566 



588,130 
2,834 



596,058 500,964 



6,393 
35,608 
11,277 

3,041 



56,319 



24,079 
3,489 



811,332 



803,079 



a For first six months only. 

^This total is $4,190 less than the total shown 



6,413 
38,359 
11,175 

3,273 



140,196 



601,850 
3,703 



66,006 
7,419 
4,077 



77,502 



294,241 
1,409 



605,653 295,650 



14,617 

H), 576 

7,442 

3,055 



69,220 



17,637 
2,445 



36,690 



11,357 
17.913 



812,832 



810, 709 



11,217 
1,913 
2,982 
1,633 



17,745 



8,007 
141 

* 399, 045 



report. 



on page 1988; the figures are given as shown in the original 



PEOVIDENT INSTITUTE OF THE STATE BAILEOAD. 



The financial organization of the provident institute resulting from 
the consohdation of the three separate provident institutes of the 
railroad operatmg companies was very much different from that of 
the Older institutions, and the reasons for these differences are impor- 
tant, having been forced by the impossibility to construct a true 
actuarial ba^is for the activity of a pension and benefit institution 
on those older Imes. It will be necessar3S therefore, to give the 
details of these differences in the financial organization 

As was stated in a preceding section, the ])rovident institute com- 
bined the functions of both a pension fund and a mutual benefit 
society, or, m otli6r words, old-a^e and invahdity insurance with sick- 
ness insurance and medical aid. The element of mutuahty, while not 
altogether elimmated, was very considerably reduced, the main 
activity taking the form of compulsory accumulation of individual 
accounts, to be converted under certain conditions either into annul, 
ties or lump-sum benefits. 

The membership in this institution was compulsory for all perma- 
nent employees of the raih-oads who entered the service after Dec em- 
ber 31, 1896, except that for employees appointed at an a^e over 45 
years such membership was optional. The institute was divided 
into two sections the first being limited to employees receiving 
monthly or annual salaries and the second to those receiving daily 



CHAPTER VII. — workmen's INSURANCE IN ITALY. 1991 

wages, the two sections thus corresponding to the pension fund and 
the mutual benefit society. The second section, like its prototype, 
combined sickness insurance and medical aid with old-age invalidity 
insurance and widows' and orphans' pensions. In case of promotion 
to a monthly salary, members of the second section were transferred 
to the first section. 

SOURCES OF INCOME. 

As in distinction to the two older institutions described, the benefits 
of this institute depended primarily upon the individual accounts. It 
IS necessary to analyze these accounts and aU sources of revenue before 
stating the amounts of pensions and other benefits. 

These sources of revenue are stated in the constitution as follows: 

(1) The regular deductions from the earnings of the members. 

(2) Extraordinary deductions. 

(3) Voluntary contributions of the members. 

(4) Contributions of the raih-oad administrations. 

(5) Special assigned sources of revenue. 

(6) Extraordinary revenues, such as legacies, donations, etc, and 

(7) Revenues from investments of funds. 

Briefly, these sources may be classified into tliree groups : Employ- 
ees' contributions, the railroad management's contributions, and 
miscellaneous revenues. In detail, these sources of revenue differed 
for the two sections of the institute. 

The regular contributions of the members were identical with those 
m the pension fund and the mutual benefit society— i. e., 5.5 per cent 
of the salary for the first section and 3.5 per cent for the second sec- 
tion. The extraordinary contributions contained the deduction of 
one-twelfth of each annual increase of salary and, besides, an initiation 
fee of one-tenth of the annual salary at appointment. As each 
member's account was an individual one, the members were permitted 
to increase these a<jcounts by additional voluntary contributions, 
which during any one month, however, must not exceed one-fifth of 
the salary. 

The regular contributions of the raiboad administration were 
identical with those for the pension fund and the mutual benefit 
society, namely, 8 per cent of the salary for the members of the first 
section and 8.15 per cent for the members of the second section, and 
amounts equal to the members' extraordinary contributions, not 
only promotion contributions, but also initiation fees. 

The additional sources of revenue from the admmistration were 
shares of the revenues assigned to the pension fund and the mutual 
benefit society. The first section shared with the pension fund and 
the second with the mutual benefit society, the distribution being 

67725°— VOL 2—11 32 



1992 



BEPOBT OF THE COMMISSIONER OF LABOR. 



affected annuaUy in proportion to the aggregate earnings of the mem- 
bership. 

The various revenues enumerated were distributed into two dis- 
tinct systems of accounts, the individual accounts and tlio collective 
account. The individual account of each member was made up of 
his compulsory deductions, his voluntary contributions, and the con- 
tribution of the railroad administration, to which at the end of each 
year was added interest at the rate established each year according 
to the computed rate of interest received by the institute. This 
account was payable to the member at time of leaving the service 
or to his family after his death. The collective account clauned all 
the other revenues and also certain transfers of the undistributed 
individual accounts or parts of accounts, as explained below. It was 
to be used for increasing the individual accounts of members leaving 
service because of old age and invalidity, and of families of members'^ 
according to special regulations to be issued. 

In addition there was also a reserve fund into whi('h certain 
amounts from other funds were paid, as explained below. 

BENEFITS. 

The annual benefits payable to members depended upon the' 
amounts of accumulations in the individual accounts, and approached 
therefore a system of subsidized and compulsory savings. 

The entire account was paid at the time of separation from service, 
either by resignation or by administrative order, under one of tlie fol- 
lowing conditions: 

(1) If the member had reached 60 years of age and comi)leted 
30 years of membership, in case of sedentary occupations, or 55 years 
of age and 25 years of membership, in active occupations. 

(2) If the separation from service was due to invahdity, after 15 
years of membership. 

(3) Without any consideration as to the length of membership if 
the separation from service was due to invahdity caused by an injury 
received in service or by a miasmatic fever. 

Thus the regulations for old age and invahdity insurance for all 
the members (i. e., for both sections) were similar to those for the 
pension fund, and a superannuation pension was introduced for the 
lower-grade employees, who before had only an mvahdity j tension. 

The entire individual account was also Kquidated in case an 
employee was discharged without any fault of his, but because of a 
change of personnel, even before he had reached the above-mentioned 
Hmits, provided he had held membership for 15 years. 

Pensions and Lump Sums.— The constitution further provided 
that when the member received the full value of his individual ac- 



CHAPTEB VII. workmen's INSURANCE IN ITALY. 1993 

count, it must be converted into a Hfe pension (after 2 per c«nt is 
deducted m favor of the reserve fund). An exception was made in 
the case of the member whose account was Hquidated before 15 3'ears 
of membership, when the account must be paid out in a lump sum 
except that m cases when the pension would amount to not less thail 
200 lire ($38.60) per annum such conversion might be demanded by 
the recipient. In the compulsory conversion of the total individual 
account mto a pension, the rights of the vdie and children must be 
taken into consideration. Thus, if a member had a wife but no chil- 
dren, she was entitled after his death to a pension of one-half the 
amount of his pension until her death or remarriage. If besides the 
wife there were minor children, they were entitled, if under acre at 
the time of his death, coUectively to one-fourth of his pension ^'until 
majoiity. If the pensioner was a widower with chUdren, they had a 
right to receive after his death and until majority one-half of his 
pension, or if there was only one child, one-fourth of his pension All 
these pensions, together with the pension of the member, were pur- 
chased out of the hquidated mdividual account. 

Partial Liquidations.— Unless one of the conditions enumerated 
above existed, the right of the employee to his mdividual account at 
the time of leavmg the service was limited, except to the voluntarv 
contributions, which together with mterest accrued, were paid out at 
the time of leaving service for any cause. 

If the employee left the service, unless dismissed for disciphnarv 
reasons, he was entitled to receive his own contributions with the 
interest accrued. The remammg portion of the mdividual account 
was divided between the coUective account and the reserve fund the 
former receivmg nme teen-twentieths, and the latter one-twentieth 

Benefits to Wives or Widows and Children.— If the employee 
should be dismissed after 15 years of membership, the entire account 
was to be hquidated in favor of his wife or minor children, and if he 
died m service after 15 3-ears of membership, m favor of his widow 
and mmor children. The requirement as to the length of member- 
ship was waived in case of death because of an mjurv or a miasmatic 
fever. These amounts were convertible into pensions for the wives 
widows, or children, unless the membership did not last 15 years- 
the pensions to widows were to run until remarriage and to the chU- 
dren to majority. 

If, however, the dismissal or death took place before this 15-year 
limit and m absence of any conditions (injury or disease) causing the 
time Inmt to be waived, the widow or wife and children were entitleil 
only to the emploj^ees' contributions with interest accrued. In this 
case, as m the case of the benefit being paid to the member himself 
the retamed portion of the account was divided between the collective 
and the reserve funds. ^ 



1994 



BEPOBT OF THE COMMISSIONER OF LABOR. 



The rights of the widows and orphans of employees who died after 
having drawn their full accounts from the institute were provided for 
at the time of the hquidation of the account, when their pensions 
were computed, as explained above. 

As the rights of the widows and children were rather compHcated, 
they are briefly summarized again. 

(1) When the ex-member died after having liquidated his full 
account and received a pension, the widow received one-Jialf of his 
pension, and minor children one-fourth of his pension. If mmor 
children, but no widow, survived, they received one-half of his pen- 
sion, in equal shares. 

(2) If an ex-member died after he received only his ow^l contdbu- 
tions with interest, part in lump sum, his widow and orphans had no 
right. 

(3) If a member died while in service and after 15 years of member- 
ship (or from mjury or miasmatic lever, when this condition is waived), 
the entire mdividual account was hquidated in favor of his widow 
and minor children, and converted into pensions, the distribution 
bemg affected m such a way that the temporary pension of each 
minor child was equal to one-third of that of the widow. 

(4) If a member died while in service but before 15 years of mem- 
bership, the widow received in a lump sum only the contributions of 
the member with interest accrued. 

The general conditions required to entitle the widow and children 
to benefits were identical with those for the other two institutions 
described above. 

In case of dismissal from service for cause, the wife and children 
had the same rights as a widow and orphans. 

Limits of Pension.— The pension to an employee was not to 
exceed four-fifths of the average annual salary during the hist qum- 
quennial period for the members of the fkst section, and 2.50 lire 
(48 cents) per day for the members of the second section. 

The pension of widows (with or without one mmor child) of the 
first section must not exceed two-fifths of that average annual salary, 
nor must it be larger than 4,000 fire ($772) per annum. If there were 
minor children, the total pension must not exceed three-fif tlis of the 
average annual salary, nor 6,000 lire ($1,158). 

When two or more minor children without a mother survived, the 
limit of their pensions was the same as for the widow; for one minor 
child the maximum limit was one-half of that for the widow. 

For the widows of members of the second section the hmits were 
very much lower: Namely 1.25 lire (24 cents) per day with or with- 
out one child, and together with two or more minor chil<h-en, 1.90 
lire (37 cents) per day. All amounts from the individual accounts 
in excess of these limits reverted to the collective fund. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1995 

Special Benefits for Members of the Second Section —It 
appears from the foregomg analysis that much more uniformity had 
been introduced m the treatment of employees of the two classes, the 
mam difference bemg in the rate of compulsory monthly contributions 
from the employees' eammgs and m the different sources for supple- 
mental revenue of the collective fund. 

The other important difference was that the second section in- 
cluded besides old-age, invalidity, and retirement relief, also the func- 
tions of sickness msurance simHar to those of the mutual benefit 
society. 

Sanitary Service.— It will be remembered that the mutual 
benefit society conducted a medico-sanitary service for the entire 
personnel of the raUroads, the expenses bemg shared by tlie second 
section of the provident institute. The constitution of the latter 
provided that as soon as the total earnmgs of its members exceeded 
that of members of the mutual benefit society it should assume this 
function, the mutual benefit society sharmg in its expenses. The 
benefits in the nature of medical and surgical help, hospital treatment, 
medicmal bath, funeral benefits, etc., were identical with those of 
the mutual benefit society enumerated on page 1963. 

Sick Benefits.— Sick benefits of two-thirds the daily wages were 
paid to the employee deprived of his earnings because of ilhiess, pro- 
vided he had been subject to deductions from his salary for at least 
30 days. The conditions of payment of sick benefits were identical 
with those of the mutual benefit society. 

Cost of Sickness Insltiance.-As far as the medical service and 
the sick benefits were concerned, the prmciple of mutuaUty was appUed 
to the second section. The entire cost of sickness insurance to the 
second section was divided among the members proportionately to 
their annual earnings, and the respective amounts were deducted from 
their mdividual accounts. 

Accident Insurance.— Similar to the other institutions, the prov- 
ident institute, m case of industrial accidents, assumed the respon- 
sibility toward all its members who were subject to the accident 
msurance law. 

■ 

The general methods applicable m the case of this institute were 
practically identical with those of the pension fund and the mutual 
benefit society, except that in case of <leath or of permanent disabUity 
necessitatmg separation from the service, the injured pereon or his 
lamily received the personal contributions with the interest accrued 
in addition to the compensation required by the law. The remainin.' 
portion of the individual account reverted to the collective account! 
But If the total amount paid under the accident law, plus these per- 
sonal contributions, was still less than the amount to which the injured 



1996 



EEPORT or THE COMMISSIONER OF LABOR. 



person or his family would have been entitled under the constitu- 
tion in case of death or invaUdity from other causes, the difference 
was paid and charged to the collective fund. 

ADMINISTRATION. 

The institute was administered by a committee dividrnl into two 
sections, corresponding to the sections of tlie institute; the details of 
administration were identical with those for the pension fund and the 
mutual benefit society, except that for certain purposes, concerning 
each section separately, the committees acted separately, and for 
other general purposes they sat together as one body. The expenses 
of administration, as in the case of the other two institutions, v/ere 
borne by the railroad administration. 

As seen from the analysis, the new provident institute had some 
advantages over the two older institutions. Perhaps the main ad- 
vantage was a fiscal one; as the benefits were dependent upon the 
individual accounts, the institute was guaranteed against deficits and 
insolvency. Another advantage was the comparative e(iuality in 
the treatment of the members of the two sections. A third was that 
under no conditions did a member lose all his rights to benefits by 
premature separation from the service. The principle prevailed that 
only the additional contributions from the railroad administration 
were in the nature of a reward for continuous service, and that under 
no circumstances was a member to be deprived of the accumulations 
resulting from his compulsory or voluntary contributions. 

STATISTICS. 

The provident institutes, organized in accordance with the law of 
1897 by the constitution adopted on January 31, 1901, grew rapidly 
within the next iive or six years at the ex})ense of the other institu- 
tions previously described. The Adriatic Railroad began to keep 
accounts for the provident institute as early as 1897, the Sicihan 
Railroad in 1898, and the Mediterranean Raihoad in 1900. As is 
shown in the following table, the average annual membership in 1900 
was 3,861, and during the last 6 months of the existence of the indi- 
vidual funds 34,918, while for the first 6 months of the consohdated 
provident institute it increased to 38,335, the first section claiming 
about one-third, and the second section two-thirds, of the total mem- 
bership. 



■ 



CHAPTER VII. workmen's INSURANCE IN ITALY. 1997 

AVERAGE MEMBERSmP OF THE PROVIDENT INSTITUTES, 1897 TO 1907, BY SECTIONS 

AND FUNDS. 

[Source: The annual rt'ports of the Institutes.] 





Number of members in- 




Year. 


First section. 


Second section. 


Grand 
totaL 




Adriatic 
fund. 


Mediter- 
ranean 
fund. 


Sicilian 
fund. 


Total. 


Adriatic 
fund. 


Mediter- 
ranean 

fund. 


Sicilian 
fund. 


Total. 


1897 


4 

15 

140 

425 

965 

1,647 

2,440 

3,249 

3,930 

4,628 

5,066 






4 

56 

215 

777 

1,713 

2,643 

3,838 

5,275 

6,728 

9,182 

11,394 

12,958 


45 

370 

938 

1,546 

1,985 

2,842 

5,767 

8,702 

9,982 

10,930 

11,615 






45 

642 

1,411 

3,084 

5,105 

6,916 

12,476 

18,725 

21,344 

22,roi 

23,524 
25,377 


49 

6K 

1.618 

6,818 
9,559 
16,314 
24,000 
28,072 
31,783 
34,918 
38,335 


1898 




41 
75 
111 
157 
229 
380 
531 
627 
817 
942 




272 

473 

680 

866 

1,017 

1,229 

1,511 

1,699 

1,824 

1,926 


1899 






1900 

1901 

1902 

19a3 

1904 

1905 

1906 

1907(a).... 
1907 (6).... 


241 
591 
767 
1,018 
1,495 
2,171 
3,737 
5,386 


858 
2,254 
3,057 
5,480 
8,512 
9,663 
9,847 
9,983 

















a Firet 6 months. 



ft Last 6 months; united fund. 



The changes in the membership during these first six months are 
shown in detail in the following statement. The membersliip on 
December 31, 1907, is seen to have exceeded 40,000. 

CHANGES IN MEMBERSHIP OF THE UNITED PROVIDENT INSTITUTES, 1807. 

[Source: The annual reports of the institutes.) 





First sec- 
tion. 


Second 
section. 


TotaL 


Membership on June 30, 1907: 

Adriatic fund 


5,159 

5,850 

925 


i 

11,839 ! 16,998 

10,215 16,065 

1,967 2.892 


Mediterranean fund 


Sicilian fund 




Total 


11,934 
2,200 


24,021 
2,900 


35.9S5 
5,1» 


Admitted July 1 to December 31, 1907 


" 


Total 


14,134 


26,921 41.055 




Lost July 1 to December 31, 1907: 

Died 


15 
130 

8 


45 
54 

32 
58 


CO 

184 

40 


Retired, etc 


Discharged 


Transferred to first section 








Total 


153 189 342 




Total membership December 31 , 1907 


13,981 


26 732 ^" 7H 











Finances. — The financial statements of these institutions, avail- 
able in detail for the entire period 1902 to 1907, must be studied sepa- 
rately for the two sections, between which important differences 
existed, as pointed out above. In the following summary table the 
total income and expenditures of the first section are given, also 
the surplus from each year's operations and the total assets. 

The entire period appears to have been one of accumulations. 
The expenditures necessarily were trivial, for the members were all 
employees with very short length of service and not entitled to retire- 



1998 



REPORT OF THE COMMISSIONER OF LABOR. 



merit benefits on account of old age. The payments made were 
extensively for invalidity or death, and even then were necessarily 
very small. By the time the three funds were merged into one, on 
July 1, 1907, the accumulated reserves of the first section of the 
provident institutes amounted to $2,287,198, or $191.65 per member. 

FINANCES OF THE PROVIDENT INSTITUTES, FIRST SECTION, 1897 TO 1907. 

[Source: The annual reports of the Institutes.] 



Fund and year. 



1897.... 
1898.... 
1899.... 
1900.-.. 
1901.... 
1902.... 
1903.... 
1904.... 
1905. . . . 
1906.... 
1907 (a) , 
1907 (b) , 



Income. 



191 

1,748 

10,215 

40,782 

65,874 

203,809 

255, 41 b 

330,134 

399,769 

587,571 

411.416 

513,541 



Expendi- 
tures. 



$51 

221 

770 

1,083 

2,048 

2,241 

4,399 

5,337 

3,468 

10,998 



Surplus. 



191 

1.748 

10, l'i4 

40, .561 

65. 104 

202, 726 

253,3<58 

327.894 

395.3^0 

582, 2}4 

407,948 

502.643 



Assets at 
end of year. 



t91 

1,839 

12,003 

52,564 

117,668 

320, 394 

573, 762 

901,656 

1,297,016 

1,879,250 

2, 287, 198 

2,789,741 



o First six months. 



b Last six months; united fund. 



The sources of these accumulations are shown in some detail for 
1902 to 1907 in the following table. The contribution of the rail- 
road operating companies is the main item, followed by the regular 
5.5 per cent deduction from the salaries of the employees. The 
income of the first section from the extraordinary deductions, namely, 
initiation fees and promotion contributions were heavier than is usual 
from such sources, but this is evidently explained by tlie youth of 
the institutions, the number of new members each year being a very 
high proportion of the total membership. In comparison with the 
amount of the members' regular contributions, the amount from this 
source was declining. In 1902 it amounted to 49.1 per cent, and in 
1906 only to 22.4 per cent of the regular contributions. On the 
other hand, the income from investments was gradually growing and 
helped to build up the individual as well as the collective accounts. 

INCOME OF THE PROVIDENT INSTITUTES, FIRST SECTION, 1902 TO 1907. 

[Source: The annual reports of the institutes.} 



Source of income. 


1902. 


1903. 


1904. 


1905. 


1906. 


1907. (a) 


Members' contributions: 

Nonnal 


$39,076 

19, 179 

2,758 


163,675 
20,821 
14,683 


$86,047 

29,502 

4,201 


$108,095 
21,232 

882 


$152, «24 

34, 279 

4,395 


$103,528 


All other 


31,993 


Arrears, etc 


533 






Total 


61,013 


99,179 

17 

116,247 

15,892 

11,228 

12,787 

66 


119, 760 

17 

147, 160 

25,747 

9,088 

28,175 

197 


130,209 
23 

174,912 
39,208 
11,039 
44,369 


191,498 

20 

256,246 

5<i,623 

2I,:«1 

62,183 

720 


136,054 


Voluntary contributions 


66 


Railroad contributions 

Investments 


129,686 
7,150 
4,646 
1,314 


182,494 
33,543 


Sale of station tickets 


9,962 


Transfers from second section. . 
All other 


11,062 
38,235 










Total 


203,809 


255,416 


330,134 


399,759 


687,671 


411,416 







t 



CHAPTER Vn. WORKMEN S INSURANCE IN ITALY. 



1999 



An interesting feature brought out by the financial accounts of 
these institutions, and one which holds true of the second as well 
as of the first section, is the trivial amount of the voluntarv con- 
tributions which the constitution permitted the members to make 
for the purpose of increasing their accounts. As these contribu- 
tions carried no additional subsidy from the railroad, the stimulus 
to voluntary saving, or rather to the use of this provident fund for 
the purposes of saving was very slight. 

The only additional source of income established by law was the 
proceeds from the sale of the tickets of admission to the railroad 
stations. This was shared with the pension fund in proportion to the 
respective amounts of the annual salaries of the total membership of 
these two institutions. 

Another source of income was the transfer of the accounts of the 
employees promoted from daily to monthly salaries and therefore 
transferred from the second to the first section of the provident 
institute. 

The finances of the second section are presented in the following 
two tables. As the second section granted sick benefits and had 
other expenses in connection with the treatment and care of the 
sick, its total expenditures are found to have been greater than those 
of the first section. The accumulations were nevertheless consid- 
erable, about keeping pace with those of the first section, but in 
view of the larger number of members, the average accumulations 
per member were very much smaller. On June 30, 1906, the total 
accumulations of the 24,021 members amounted to $2,240,128 or 
$93.26 per member, less than one-half of that of the membei-s of the 
first section. 

FINANCES OF THE PROVIDENT INSTITUTES, SECOND SECTION, 1897 TO 1937. 

(Source: The annual reports of the institutes.] 



Year. 



1897.... 

1898.... 

1899.... 

1900... 

1901... 

1902... 

1903... 

1904. . . 

1905... 

1906... 

1907 (a) 

1907 (b) 

1907... 



Income. 



$431 

5,051 

12,555 

25,732 

43,233 

197,572 

376,069 

622,444 

509,154 

662,352 

408,096 

437,985 

846,081 



Expendi- 
tures. 



$179 

726 

4,525 

10,210 

16,832 

22,704 

54,393 

88,021 

129,045 

134,982 

60,943 

94,313 

155,256 



SurpliiS. 



$252 

4,325 

8,030 

15,522 

26,401 

174,868 

321,676 

434,423 

380,109 

527.370 

347, 153 

343. 672 

690,825 



Assets at end 
of year. 



$253 

4,577 

12.607 

28.129 

54.530 

229.396 

551.074 

985,497 

1.365,606 

1. .892. 976 

2. 240. 129 

2..')83.801 

2. 583. SOI 



a First six months. 



^ Last six months; muted fund. 



a First six months only. 



The income from members of the second section was very much 
smaller than that of the first section, notwithstanding the very 
much larger number of members, the annual contributions of the 



2000 



REPORT OF THE COMMISSIONER OF I^ABOB. 



members amounting only to 3.5 per cent of the salary instead of 
5.5 per cent as in the first section. This source contributed in 1906 
less than one-fifth (19.5 per cent) of the total income. The income 
from initiation fees and promotion contributions was high, for the 
same reason as in the first section, i. e., because of the admission 
of a proportionately large number of new members; and the miscel- 
laneous sources of revenue established by the law, which may be 
considered indirect contributions of the railroads, were very much 
more important in this section. Adding these to the railroad contri- 
butions, it is seen that more than one-half of the revenue was con- 
tributed by the railroad management. 

In the expenses of the second section, a very large item is, properly 
speaking, a bookkeeping account, representing the transfer of the 
accounts of members from the second to the first section. Disre- 
garding this, the most important item is represented by sick bene- 
fits. The items for physicians' fees and traveling expenses and also 
for medicines are very small as compared with the amount of sick 
benefits, but this is explained by the fact that the cost of tlie fii-st 
aid and of antifebrile medicaments since 1904 was assumed by the 
railroad administration. 

INCOME AND EXPENDITURES OF THE PROVIDENT INSTITUTES, SECOND SECTION% 

1909 TO 1907. 



[Source: The annual reports of the 


institutes.} 






Item. 


1902. 


1^. 


1904. 


1905. 


1908. 


1907.(a) 


INCOME. 

Members' contributions: 

Normal 


$30,358 

13,740 

1,401 


$82, 446 
54,302 
14, 721 


$112,218 
87.763 
12, 454 


$124,807 

68,206 

2,243 


$129,358 

48,255 

374 


$71 155 


All other 


2f> MS.'i 


Arrears, etc 


:u)3 






Total 


51.559 

122,057 

17,682 

4,243 

2,031 


151,469 

167, 68-* 

42.052 

11,793 

3,071 


212,435 

222,751 

46.123 

27,869 

13,266 


195, 256 

205,912 

42,394 

42.635 

22,957 


177,987 

267, 107 

70,873 

56,193 

90, 192 


QS 44") 


Railroad contributions 


214,499 
43,487 

33, ties 

17,999 


other sources of revenue under the law (6) 
Investments 


All other 




Total 


197. 572 


376,069 


522, 444 


509.154 


662,352 


40.S <)Q6 






EXPENDITURES. 

Physicians' expenses, etc 


5,414 

2,402 

13,586 

41 

204 

1,057 


9,074 
3,20:3 

27, 172 

586 

1,342 

13,016 


8,840 
3,6&4 

41,400 

893 

2,539 

30,665 


9,439 

4.634 

53.469 

1.178 

15,804 

44, 521 


9,639 
5,240 

50,262 

981 

6,537 

62,323 


3,794 
2 189 


Meaicines and appliances 


Sick benefits 


38,936 
K28 


Funeral benefits 


Repayments of contributions 


2,938 

11,062 

1, 196 


Payments to first section 


Another 


* 












Total 


22,704 


54,393 


88,021 


129,045 


134,982 


60,943 





a First six months only. 

fc Including fines imposed on employees, proceeds of sale of unclaimed articles found on railroad property, 

{jroceeds of sale of railroad tariffs and time-tables, unclaimed overcharges on freight, and excess sums 
ound in cash accounts of stations. 

For the financial statement of the united provident institute data are 
available only for the first six months, July 1 to December 31, 1907. 



CHAPTER VII. workmen's INSURANCE IN ITALY. 



2001 



The income and expenditures of both sections are showTi for that 
period in the following table. Eliminating the transfers from the 
second to the first section, the income for the six months amounted 
to $904,332 and the expenditures to $58,117, increasing the assets 
during these six months by $846,215, or an average of about $22 per 
average member. As the total contributions of the members for these 
six montlis were only $272,608, the accumulations appear to be three 
times as great, notwithstanding the cost of sick benefits and other 
benefit payments. 

By the end of 1907 the total assets of the first section increased to 
$2,789,741 and those of the second section to $2,583,801, making a 
total of $5,373,542. 

INCOME AND EXPENDITURES OF THE PROVIDENT INSTITUTE, JULY 1 TO DECEMBER 

31, 1907. 

[Source: The annual reports of the Institutes.] 



Income. 



Expenditures. 



Source. 



Members' contributions: 

Normal 

PajTTienis at rein- 
statement, etc 

All other 



$127,945 

1,158 
39,766 



Total. 



Railroad contributions: 

Normal 

Arrears 

All other 



Total. 



Other legal sources of rev- 
enue («) 

Investment 

Another 



Total income ex- 
clusive of trans- 
fers 

Transfers from second sec- 
tion 



Grand total. 



First 
section. 



168,869 



186,102 
'39,'7f.6' 



Second 
section. 



$78,716 

741 

26, 181 



105.638 



225,868 



183,296 
34, 126 
26,181 



Total. 



Item. 



$206,661 
65,947 



Repayment of individ- 
ual accounts: 
To discharged em- 
ployees 

To families 



First 
section 



274,507 



Total. 



3^9.398 
34, 126 
65,947 



From collective accounts: 
'To discharged em- 
ployees 

To families 



243,603 469,471 



Total. 



15,636 
44,694 
11,280 



466,347 
47, 194 



42,082 

37,999 

8,663 



437,985 



513,541 



437,985 



57, 718 
82,693 
19.943 



Medical expenses. 
Funeral expenses. 
Sick benefits 



904,332 
47, 194 



951,526 



Total expendi- 
tures exclusive 

of transfers 

Transfers to first secti<m. 



$5,300 
2,556 



7,856 



Second 
section. 



1 TotaL 



$3,014 
3,475 



$8,314 
6,031 



6,489 I 14.345 



2,9.59 i 1,384 ; 4..^43 
183 ! 3,527 i 3,71» 



3,142 i 4,911 



8,053 



10,998 



6,583 

779 

28,357 



47, 119 
47,194 



Total expenditures 



10.998 



Surplus 502, 543 



94. 313 
343,072 



Grand total 1513,541 1437,985 



6,583 

779 

28.357 



5^,117 
47,194 



105.311 
846, 215 

951,526 



a Including fines imposed on employees, proceeds of sale of unclaimed articles found on railroad property, 

proceeds of sale of railroad tariffs and time-tables, unclaimed overcharges on freight, and excess sums found 
in cash accounts of stations. 

LAW OF JULY 9, 1908.(«) 

The actuarial advantages of the new provident institute over the 
older institutions, the pension fund and the mutual benefit society, 
consisted in the prevention of deficits, and were of greater importance 
as long as these institutions were self-supporting and the railroads 
managed by private companies. This avoidance of deficits could 



oBoUettino Ufficiale delle Ferrovie dello Stato. No. 31, Aug. 1, 1908. 



2002 



REPORT OF THE COMMISSIONER OF LABOR. 



naturally be accomplished only at the expense of the pensions. With 
the nationalization of the operation of railroads, when all the railway 
employees became government employees, the actuarial advantage of 
the provident institutes lost some of its value, as old-age and invalidity 
pensions constitute a recognized feature of the I taHan Government 
service. On the other hand, it was felt that the pensions purchasable 
with the accumulated individual accounts would be smaller than 
those granted by the old pension fund. The existence of differences 
in the treatment of various classes of employees was considered a 
disadvantage from an administrative point of view, as leading to 
dissatisfaction. 

The law of July 9, 1908, was intended to do away with these 
inequalities and disadvantages. This law abolished all the three 
existing institutions, the pension fund, the mutual benefit society, and 
the provident institute, transferring the entire pension activity to a 
new office within the state railroad administration. Beginning with 
January, 1909, all the existing funds, assets, and sources of revenue 
were transferred to this branch of the Government, and the expend- 
itures and revenues connected with the pensions must be entered as 
parts of the railroad budget. 

As a basis for the pension payments the < onstitution of the pension 
fund is taken, except as modified by the ])resent law. This consti- 
tution was more Hberal in old-age and invalidity pension payments 
than either that of the mutual benefit society or the provident insti- 
tute. The revenues of the service remain mainly as before, except 
that all members' regular contributions are equally placed at 5.5 
per cent of the salaries, while the contributions of the railroad admin- 
istration for 1909 were placed at 8 per cent of the salaries, for 1910 
at 8.5 per cent, and for 1911 and thereafter at 9 per cent. All mem- 
bers are subject to the extraordinary contribution of one- twelfth of 
the increase and of one-tenth of the initial salary at the time of 
appointment, the railroad administration contributing equal amounts 
in both cases. 

Of the new sources of revenue created, the most impoitant are the 
reestablishment of the 2 per cent tax upon the gross revenues from 
operation, which had been in force according to the original contract 
of lease of the government railroads to private operating companies 
from 1885 until 1905, and interest upon all the accumulated funds 
of the pension fund, the mutual benefit society, and the provident 
institute, and also upon the accumulations in the Loan and Deposit 
Bank for the purpose of covering the deficits of the pension funds 
and the mutual benefit societies. 

The substitution of the pension scheme of the old pension fund for 
that of the mutual benefit society and of the provident institute was of 



CHAPTER VII. WORKMEN S INSURANCE IN ITALY. 



2003 



most importance for the rights of the widows and orphans of the mem- 
bers of the latter. These extensions are limited, however, in their 
retroactive effect. Thus far, as concerns the families of members who 
retired or died before January, 1909, the old rules of the respective 
institutions are in force. Besides, the provisions of the pension fund 
concerning the pension rights of widows and orphans shall not apply 
to marriages entered into before July 1, 1908, by persons holding 
membership in the mutual benefit society on December 31, 1908, and 
before January, 1908, by persons holding membership in the provi- 
dent institute on December 31, 1908. 

The sickness insurance benefits are excluded from the new pension 
system, but the interests of the lower grade employees, for whom 
this sickness insurance was intended, did not suffer, for the law placed 
the duty of providing sick benefits and medical care, etc., upon the 
railroad administration without any cost to the personnel. Moreover, 
the amount of sick benefits was raised from two-thirds of the daily 
wage to the full wage. Again, the entire application of the accident 
insurance law was assumed by the railroad administration directly, 
and the benefits for accidents leading to temporary disabihty was 
increased to full pay instead of two-thirds, as under the law. 

Those were the main changes introduced in the pension fund con- 
stitution as applied to all the employees after January 1, 1909. 
Only for the female employees, members of the old mutual benefit 
society, have the old rules concerning deductions from salaries and 
concerning pensions been left undisturbed. No new appointments 
are made in that class. 

The system of individual accounts has been discarded, but it can 
hardly be considered a return to the mutual system, as the Govern- 
ment assumes the entire financial responsibility for the application 
of the law. 

The essential objection to this system remains in the fact that it is 
like the old pension fund was — primarily, an old-age or invalidity 
retirement fund— and that, notwithstanding the considerable compul- 
sory contributions by the employees, they lose all their rights to a 
pension, for themselves as well as for their families, in case of volun- 
tary resignation before certain age limits (unless invalidity can be 
estabhshed), while in case of dismissal they lose their pension rights, 
but their families are treated as widows would be if death instead of 
dismissal had taken place, i. e., are entitled to pensions after 10 years 
of service, but not before. 

The codified text of the pension provisions, prepared in accordance 
with article 21 of the law of July 9, 1908, and approved by the royal 
decree of April 22, 1909, combines all the provisions of the three con- 
stitutions which are still in force with those of the law, but represents 



2004 



EEPOET OF THK COMMISSIONER OF LABOR. 



mainly an adjustment of the provisions of the pension fund consti- 
tution to the requirements of the new law. It will not bo necessary 
therefore, to give any detailed analysis of this codified text (•) 

As this law went into effect so very re.'ently, no data relative to 
the results of its application are available. 

CONCLtrSION'S. 

The extent of the operations of this system may roughly be iud-ed 
however from the combined data of the operations oithe nine inlt 
tutions for the first six months of 1907 and of the three unml 1 
nstitutions for the second six months of the same year g^W 

from ;oT4tt?3?8.''"^ ''^^^'*"*''''^^ ""^ '"^'-^^^ ^-"^ '^^ ^-' 

The total number of employees of the state raUways on June 30 

1907, IS stated at 134,611, but of these 39,899 are classified as temDo^ 

rary or supernumerary employees (persomh awentizio) not proteX 

by the pension legislation. The regular force comprUe.l 94 712 so 

that practically the entire force of regular employees hddmlmber- 

ship m one of the three benefit institutions. ""'i memder- 

The financial operations cover revenues amounting to «5 fi'ifi Q-?« 

and expenditures of $3,799,048, leaving a surplus of 81,837 8^5 S 

rSXVo'l'"'^'^ "' *'^ ''"•^'•'^^^ ''^^"*"*^- from ,/6S,170 



Stl J." Rln'o? '''''"'"''"' ^" '' ^''"'°"' "'' ^-»-'« -^-^''^ '^^iT^I^. 



i"' 



2006 



EEPOET OF THE COMMISSIONER OF UABOR. 



CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 



2007 



SUMMARY OF OPERATIONS OF ALL ITALIAN 

[Source: The annual 





Membership 
at— 


Income- 


Fund. 


Begin- 
ning of 
I)enod. 


End of 
period. 


Members ' 
contribu- 
tions. 


Railroad 
contribu- 
tions. 


Invest- 
ments. 


Other 
r^ular 
sources. 


All 
other. 


Total. 


January 1 to June 30, 1907: 
Pension funds- 
Adriatic 


9,320 

16,986 

861 


9, 161 

16,654 
862 


$151,938 

224,297 

16,287 


$209,334 

309. 845 

22,306 


$162,061 

262,357 

22,760 


$12, 839 

11,807 

698 


$11,472 

11, 187 

21H 


$547,644 

819, 493 

62,269 


Mediterranean 

Sicilian 




Total 


27, 167 


26,677 


392,522 


541,485 


447, 178 


25,344 


22,877 


1,429,406 




Mutual benefit socie- 
ties- 
Adriatic 


.12, 704 

14, 189 

1,828 


12,501 
13,932 

1,788 


49,276 

62,541 

7, la.'i 


138,771 

199,443 

25,033 


6,339 

11,718 

15 


34,260 

33,915 

3,701 

71,876 


""i,"i85" 


228,647 

307,617 

37,069 


Mediterranean 

Sicilian 




Total 


28.721 


28,221 


118,952 


363, 247 


18,072 


l,18«i 


6 573,333 




Provident institutes- 
Adriatic, first sec- 
tion 


4,973 
11,948 
4,921 
9,750 
959 
1,885 


5,159 
11,839 

5,850 

10,215 

925 

1,967 


62, 152 
47,390 
63,2:i5 
43,650 
10,733 
7,403 


83,740 
78,737 
84,407 
114,358 
14,347 
21,404 


17,925 
17,104 
12,586 
13,133 
3,032 
3,431 


4,891 
21,224 

4,649 

19,243 

422 

3,020 


38,236 
16,109 


206,943 
180,564 
164,877 
192, 239 
39,596 
35,293 


Adriatic, second 
section 


M e d i t e r r anean, 
first section 


M e d i t e rr a nean, 
second section . . . 

Sicilian, first sec- 
tion 


1,855 

ll,0ti2 

35 


Sicilian, second sec- 
tion 




Total, first sec- 
tion 


10,853 
23,583 


11,934 
24,021 


136,120 
98,443 


182,494 
214,499 


33,543 
33,668 


9,962 
43,487 


49,297 
17,999 


411,416 
408,096 


Total, second 
section 


Both sections 


34,436 


35,955 


234,563 


396,993 


67,21J 


53,449 


67,296 


819,512 


July 1 to December 31, 1907: 

State pension fund 

State Mutual Benefit 
Societies 


26,677 
28,221 
11,934 
24,021 


25,966 
27,699 
13,981 
26,732 


388,416 
116,590 
168,860 
105,638 


488,626 
271,185 
225,868 
243,603 


476,996 
19,935 
44,694 
37,999 


43,711 
56,994 
15,636 
42,082 


284 
421 

58,474 
8,663 


1,398,033 
465,125 
513,541 
437,985 


State Provident Insti- 
tutes, first section 

State Provident Insti- 
tutes, second section. 


Total 


90,853 


94,378 


779,513 


1,229,282 


579,624 


158.423 


67,842 


2.814,684 




The entire year 1907: 

Pension funds 


27,167 
28,721 
10,853 
23,583 


25,966 
27,699 
13,981 
26,732 


780,938 
235,542 
304,989 
204,081 


1,030,111 
634,432 
408,362 
458, 102 


924, 174 
38,007 
78,237 
71,667 


69,056 

128,870 

25,598 

85,569 


23,161 

1,607 

107,771 

26,«S2 


2,827,439 

1,038,458 

924,957 

84€,081 


Mutual Benefit Socie- 
ties 


Provident Institutes, 
first section 


Provident Institutes, 
second section 


Grand total 


90,324 


94,378 


1,525,550 


2,531,007 


1,112,085 


309,092 


159,201 


5,636,935 





o Deficit. 

b This total is $4,190 less than the total shown on page 1988; the figures are given as shown in the original 
report. 



RAILROAD EMPLOYEES' BENEFIT FUNDS. 1907. 
reports of the fimds.] 



Expenditures. 


Surplus. 


Assets at— 


Pensions. 


Lump- 
sum 
benefits. 


Sick 
benefits. 


Sanitary 
service. 


All other. 


Total. 


Beginning 
of period. 


End of 
period. 


$582,280 

751,180 

27,633 


$531 
601 




• 




$582,811 

751,886 

27,633 


o $3,5. 167 
67, 607 
34,636 


$7,891,032 

12,977,203 

1,190,415 








$105 


$7,855,865 






13,044,810 
1,225,051 


1,361,093 


1,132 






105 


1,362,330 

207,026 

165,352 

26,667 


67,076 


22,058,650 


22, 125, 728 


167,980 

116,930 

20,548 


3,204 

4,268 

465 


$26,828 

35,098 

4,080 


$4,516 
5,634 
1,346 


4,498 
3,422 

228 


21,621 

142,265 

10,402 


223,925 
687,523 
e 32, 146 


245, 54« 

729,788 
« 21, 744 


305,458 


7,937 


66,006 


11,496 


8,148 


6 399,045 


174,288 


779,302 


963,590 




2,435 

2,267 
786 

1,120 
247 
379 








2,435 
29,683 

786 
14,724 

247 
16,536 


2(M,508 
150,881 
164,091 
177,515 
39,349 
18,757 


979,996 
960,632 
736,789 
747,667 
162,465 
184,677 






24,602 


2,797 


17 


1,184,501 




1,111,513 




11,516 


2,088 




900,880 






925,182 




2,818 


1,098 


12,241 


201,814 




203,434 




3,468 
3,766 








3,468 
60,943 


407,948 
347, 153 


1,879,250 
1,892,976 






38,936 


5,983 


12,258 


2,287,198 




2,240.129 




7,234 


38,936 


5,983 


12,258 


64,411 


755, 101 


3,772,226 


4,527,327 


1,445,925 
313,642 


1,502 

7,760 

10,998 

12, 179 






180 
28,392 


1,447,607 

420,345 

10,998 

94,313 


a 49, 574 

44,780 

502,543 

343,672 


22,125,726 

953,590 

2, 287, 198 

2,240,129 




58,714 


11,837 


22,076,152 
998,370 




28,357 


6,583 


47,194 


2,789,741 


. 


2,583,801 


1,759,567 1 


32,439 


87,071 


18,420 


75,766 


1.973,263 


841,421 


27,606,043 


28,448,0I>4 


2,807,018 
619, 100 


2,634 
15,697 
14,466 
15,945 






28,5 
36,540 


2,809,937 

6 819,390 

14,466 

155,256 


17,502 
219,068 
910, 491 
690,825 


22,058,650 

779,302 

1,879,250 

1,892,976 




124,720 


23,333 


22,076,152 
998,370 




67,293 


12,566 


59,452 


2, 789, 741 




2,583,801 


3,426,118 


48,742 


192,013 


35,899 


96,277 


3,799,049 


1,837,886 


26,610,178 


28,448,0&l 



67725°— VOL 2— li- 



as 



c Liabilities. 



2008 



EEPOET OF THE COMMISSIOJSTER OF LABOR. 



The combinations of all these institutions into one statistical 
picture, as is done in this table, brings out several interesting facts. 
Of the total income of $5,636,938, only $1,525,550, or 27.1 ))er cent, 
was contributed by the employees. The railroads directly con- 
tributed $2,531,008, or 44.9 per cent, of the total revenue, but in 
addition various sources of revenue, which may be considered indirect 
contributions of the railroads, were created by the law, yielding 
altogether $309,092, or 5.5 per cent, so that the entire contribution 
of the railroads may be put at 50.4 per cent of the total income. The 
mcome from investments brought in $1,112,086, or 1^.7, leavmg only 
$159,202, or 2.8, for other sources of revenue. 

The total expenditures for the entire year amounted to $3,799,048, 
leavmg a surplus of $1,837,885. By far the greatest share of the 
expenditures of the pension funds and of the mutual benefit societies 
was claimed by pension payments, wliich amounted to $3,426,115, 
or 90.2 per cent of the total. The other benefits in case of retu-ement 
or death, paid in lump sums, constituted only 1.3 per cent; sick 
benefits, 5.1 per cent; expenses of medical service, 0.9 per cent; and 
all other expenses, 2.5 per cent; tliese latter are mostly bookkeeping 
accounts, representing transfers from the mutual benefit societies to 
the pension funds, and from the second sections of the provident 
institutes to the first sections. 

The total assets of the three institutions on December 31, 1907, 
amounted to $28,448,055. But in addition to that, large accumula- 
tions to the credit of the older pension fund and the mutual benefit 
society were deposited with the governmental Bank of Deposits and 
Loans. It will be remembered that in accordance with the law of 
1885 there was a two percent tax levied upon the gross receipts (1 per 
cent in case of the Sicihan railways), in order to cover the deficit of 
the pension funds up to 1885. In addition, the laws of April 1 5, 1897, 
and March 29, 1900, created surtaxes, descril)ed above. Up to 
March 31, 1900, these amounts accumulated in the treasuries of the 
pension funds, but on that date, in accordance with the latter law 
(March 29, 1900), they were transferred to the Bank of Deposits 
and Loans. On that date they amounted to $3,508,612. Further 
payments accordmg to these laws were made into the Bank of 
Deposits and Loans. The revenues under the older law of 1885 
stopped on June 30, 1905, when the contracts for private operation 
ran out and the railroads reverted to the State, and on that date they 
amounted to $1,848,902. The total revenue from the later taxes of 
1897 and 1900 amounted on December 31, 1906, to $11,489,415, so 
that the total payments into the Bank of Deposits and Loans, 
reached $13,338,317. The actual accumulations were materially 
larger because of the interest on the securities in which these deposits 



ii 



^ w 



i 



CHAPTEE VII. — workmen's INSURANCE IN ITALY. 2009 

were invested according to law. On December 31, 1906, the total 
accumulations amounted to $14,967,783, and on December 31 1907 
to $17,234,436. 

To this must be added the accumulations of a special fund created 
by the law in 1885 to cover the deficits which have accrued in the old 
Southern (Meridional) Pension Fund, merged durmg the reorganiza- 
tion of the raih-oads and their pension funds, partly with the Adriatic 
and partly with the Sicihan funds. This fund was constituted bv 
contributions from the Southern Railroad Companv, which continued 
to operate the Adriatic system. Until June 30, 1905, contributions 
were made to the fund from time to time by the Southern railroad, 
and since that date the fund grew by accruing mterest. On December 
31, 1907, it amounted to $1,891,731, so that the total of these supple- 
mentary funds amounted on that date to $19,126,167. Together 
with the assets of the three institutions, $28,448,055, it represented a 
total accumulation of $47,574,222, of which the mterest, according 
to the law of July 9, 1908, was made available for the purpose of 
meeting the pension obUgations according to the law. As, however 
the Government assumed the entire responsibihty of meeting thii 
obligation of the pension system, the financial details, important from 
a fiscal point of view, are immaterial as far as the solvency of the 
pension system is concerned. 

ACCUMULATIONS OF SPECIAL FUNDS DEPOSITED WITH THE BANK OF DFPO^ttq 
AND LOANS FOR THE PURPOSE OF COVERING OLD DEFIcTtS OF PENSION F^V^^ 
AND MUTUAL BENEFIT SOCIETIES. ^^^^i^a O* Pi!.NSION FINDS 

[Source: Rapporto sull" Andamento della Cassa Pension! per il Personale delle Fenx,vle Costltuente la 

Rete Adnatica, 1902 to 1903.] v^suiuenie la 



Date of receipt. 



March 31, 1900.... 
December 31, 1902 
December 31, 1903 
December 31, 1904 

June 30, 1905 

December 31, 1905 
December 31, 1908 
December 3 1,1907. 



Proceeds of 
the orig- 
inal 2 per 
cent tax 
(Sicilian 

fund, 1 per 
cent). 



$293, 129 
938, 532 
1,217,800 
1, 589, 154 
1,848,902 
1,848,902 
1,848,902 
1,848,902 



Proceeds of 
the sur- 
taxes es- 
tablished 
bv the laws 
of April 15, 
1897, and 
March 29, 
1900. 



$3, 215, 483 

6,331,291 

7,511,848 

8, 752, 216 

9,348,949 

10, 052, 801 

11, 489, 415 

(") 



Total pay- 
ments into 
the Loan 
and De- 
posit 
Bank. 



$3. 508, 612 

7, 269. 823 

8, 729, 648 

10,341,370 

11,197,851 

11,901,703 

13,338,317 

(") 



Total value 
of these 
proceeds, 
with inter- 
est ac- 
crued on 
deposit In 
the Loan 
and De- 
posit 
Bank. 



$3,508,612 

(°) 

C) 
10,977,583 

12, 749, 265 
14,967,783 
17, 234, 436 



Special 

fund for 

meeting 

the deficits 

of the 

Meridional 

pension 

fund. 



(«) 
8959, 727 
1,248.808 
1,693,881 

(«) 
1,757,702 
1,822.315 
1.891,731 



Total 
amounts 

on deposit 
with the 

Loan and 
Deposit 

Bank, for 
the pur- 
pose of 
meeting 
deficit*. 



(«) 

(«) 

512,671,464 

C) 
14,506.967 
16, 790. 098 
19, 120, 107 



o l^ot reported. 



2010 



REPORT OF THE COMMISSIONER OF LABOR. 



BIBLIOGRAPHY. 



Office du travail, Anuuaire <le 



Bulletin des 



1 Nachtrag zu Heft YI. 
2 Nachtrag zu Heft VI. 



GENERAL. 

Belgium. Ministere de Tindustrie et du travail. 

la legislation du travail, 1898-1909. 
Congr^s international des accidents du travail et des assurances sociales 

assurances sociales, 1890-1911. 
Gobbi, Ulisse: L'assicurazione in generale. Milano, 1908. 
Magaldi, Dr. Vincenzo: Les assurances ouvri^res en Italie. (Congr^ international 

des accidents du travail et des assurances sociales. Vienna, 1905.) 
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national des accidents du travail et des assurances sociales. Rome, 1908.) 
Ministero di agricoltura, industria e commercio. Bollettino dell' ufficio del lavoro, 

1904-1911. 
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Annuario statistico Italiano, 1905-7. Roma, 1JK)8. 
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della previdenza. Bollettino di notizie sul credito e sulla previdenza, 1884-1910. 
Profumo, L. G.: Le assicurazione operaie nella legislazione sociale. Turino, 1903. 
Virgilii, Prof. Dr. Filippo: Die soziale Gesetzgebung in Italien (Archiv fftr soziaie 

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Zacher, Dr. Georg: Die Arbeiter-Versicherung im Auslande. Heft VI, Die Arbeiter- 

Versicherung in Italien. Berlin, 1899. 
Idem. Heft Via, Die Arbeiterversicherung in Italien. 

Bearbeitet von Dr. Vincenzo Magaldi. Berlin, 1906. 
Idem. Heft VIb. Die Arbeiterversicherung in Italien 

Bearbeitet von Dr. Vincenzo Magaldi. Berlin, 1908. 

ACCIDENT INSURANCE. 

Atti della cassa nazionale di assicurazione per gli infortuni degli operai sul lavoro. 
Verbale delle seduto del consiglio superiore» it>03-1908. 

Atti parlamentari. Camera dei deputati: Legfslalura XIV, Nos. 75, 75a, 215, 215tt; 
XV, Noe. 73, 73a; XVI, Noe. 116, 116a; XVII, No. 326: XVIII, Noe. 83, 83a. 

Atti parlamentari. Senator L^islatura XV, Nos. 207, 207a; XVII, N<)8. 33, 33a; XIX, 
No. 161a. 

Bassi, S.r Gli infortuni del lavoro agricolo. Milan<^, 1909. 

Bellom, Maurice: Les lois d'aesurance ouvri^re a I'etrang^re, II. Assurance contre 
les accidents, vols. 1-6. 

Bodio, L.: Etat de la question des accidents du travail en Italie. (Congr^H interna- 
tional des accidents du travail et des assurances sociales. Berne, 1891.) 

Calojanni, Pompei: La loi sur les accidents du travail appliquee en Sicilie aux ouvriers 
des mines de soufre. (Congr^s international des accidents du travail et dos 
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Calojanni, Pompei: Trois anne^s d'application de la loi sur les accidents du travail 
aux ouvriers les mines de soufre de la Sicilie. (Congr^s international des acci- 
dents du travail et des assurances sociales. Dusseldorf, 1902.) 

Cassa nazionale d'assicurazione per gU infortuni degli operai sul lavoro. Sede cen- 
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(a) Convenzione costitutiva e regolamento generale. Milano, 1889. 

(b) Legge e regolamento per gli infortuni degli operai sul lavoro. Milano, 1899. 

(c) Legge e regolamento per gli infortuni degli operai sul lavoro. Milano, 1904. 

(d) Regolamento dei premii e delle indennit^. Milano, 1898. 

(e) Regolamento dei premii e delle indenuit^ e tariffe. Milano, 1903. 



'/, 



CHAPTER VII. workmen's INSURANCE IN ITALY. 2011 

Ferraris, Prof. Carlo F.: Relazione intomo all assicurazione obbligatoriale alle respon- 

sabilit^ dei padroni e imprenditori per gli infortuni sul lavoro. ( Annali del credito 

e della previdenza, 1889, No. 22, allegato B.) 
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Infortuni degli operai sul lavoro. Legge, regolamento, regi decreti, etc. (Annali del 
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SICKNESS INSURANCE. 

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Besso, M.: Relazione sul bilanci tecnichi della society di mutuo soccorso. (Ministero 
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cation. (Congr^s international des accidentes du travail et des assurances so- 
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cation de la loi. (Congres international des accidents du travail et des assurances 
sociales. Dusseldorf, 1902.) 

Ministero di agricoltura, industria e commercio. Direzione della statistica. Statis- 
tica delle societa di mutuo soccorso, 1875, 1878, 1885 

Ministero di agricoltura, industria e commercio. Direzione generale della statistica 
Jiilenco delle societa di mutuo soccorso. Roma, 1898 

Ministero di agricoltura, industria e commercio. ' Ispettorato generale del credito e 
delia previdenza. La society di mutuo soccorso in Italia al 31 deccmbre 1904 
Koma, 1906. 

Rodino, L.: Codice delle society di mutuo soccorso. Firenze 1894 

Slerojavacca Dr. L.: Die Unterstutzungsvereine der Arbeiter in 'italien. (Archiv 

tur soziale Gesetzebung und Statistik, 3 Band, 1890 ) 
Tavole della frequenza e duraU delle malattie osservate nelle persone inscritto a 

society di mutuo soccorso. (Annali di statistica. Roma, 1892.) 



I 



2012 REPORT OF THE COMMISSIONER OF LABOR. 

Monzilli,M.:Relazioneinton,oall'applicazionedeIlaIeggel5apriIe,1886Bullesociet4 

Norme e tab'elle fondamentali perl' ordiuamentoe per i bilanoi tecnichi delle eocieU 
di mutuo Boccorso. Roma, 1898 eocieia 

ma attie preeso gh .scntti nelle aocieta di mutuo soccoreo. (Annali delTredito e 
della previdenza, 1903, No. 51.) """ ut-i treauo e 

MATERNITY INSURANCE. 

Ministero di agricoltura, industria e commercio. Ufficio del lavoro: Baai tecniclu 
di una caesa di matemiU. Roma 1904 tecniclu 

^'"mate'ltren'lf r''°'^^"*"f'^^' """^^ ""' P'^™>"'"- «* ^'a^istance pour la 
matemite en Itahe. (Congrfe mtemational des accidents du travail et des assu- 
rances Bocialea. Paris, 1900.) "<»v«i ki ues assu- 

Scodnik, Henri: L'assurance matemelle et les caisses pour la maternity rPnn^ri. 
.«ona. des accidents du travai, et des a^ur^'nces Lt.t"' Roml'^S 

Scodnik, Henri: L'institution de caisses pour la maternity en Italic (Congr^s inter 
national des accidents du tra^.il et des assurances sociales. DoIomS 1902 ) 

OLD AGE AND INVALIDITY INSURANCE. 

'"'"atT;^iale'^'' ^'un'" '-^''^'-V''"- (^•""'" '^'^ <^-"--"« -^ >" P-'^vo- 
yancesociale R^unis par le mimatJ^re du commerce. Paris, 1903 ) 

Cassa nazionaledi previdenza per la invalidity e per la vecchiaia degU operai- 

(a Statute m esecuzione della legge (testo unico) 30 maggio, 1W7 

d^f Tr'° '^'^"'^"^ t^riffe per la determinazione delle quote di ren- 
dita vitaUzia per gli operai inscritti. 

W Assicurazionepopolari di rendite vitalizie 
"^trufn""^"!!- ^f "*"' ^^'^ het^eSend d'ie National-Ver.u herungskasse 
^d^^^'^^f^' '- ^^'>«'-- <^-^^v far soziale Oesetz'S:^ 

rancroTLef ViennSs IlT^'"''^' '" "^"'^"'^ "" ''^^"' «' "^ -"" 

^ 'lSr^*)r''f ■^'^''"^^'"^"P""''*"^''"'^'*^ ^' P»"' '" vieillessedesouvrie.^ en 
PaSlwT'' -^-national des accidents du (luvail et des assurances sS:s 

Magaldi, Df- Vincenzo: D^veloppment de la ca!s,.e aationale de pr^voyanoe nour 

d'rccfd L drt^':;!":'!!^"^ '^ """^^^ ^" ''^"^ (Con^.., iX^ationa 
aes accments du travail et des assurances Bociale.-. Dflsseldorf 1902 ) 

Rava Prof . Luig. : La ca^ nazionale di previdenza per 1' invaliditre la v^chiaia dedi 
operai mrelazione delle legislazione estere. Bologna, 1902 ^ 

ilrlrl^v^'- ^''*''°°' ™"" ""odificazione dello atatuto e del regolamento 
dell on '^.^!'''°^^^' ^' P'«-denza per la invalidity e per fve ITa a 
degh opera.. (Mmistero di agricoltura, indu..<ria e commerkio ITytZl 

Rava tof ^ P'^y^r- ^°"'" ''"' ""^'"^ « ''^"^ previdenza, 1902, No 46 
Rava, Prof. Luigi: SuUo statute e sul regolamento tecnico della cassa nazioi ale di 
previdenza per la vecchiaia e la invalidity degli operai. (Ministrdi a'Teol ura 
industria e commercio. Divisione eredito e previdenza. Annali delTcrod toe 
della previdenza, 1899, No. 34.) ^nuaii uel credito e 



CHAPTER vn. — workmen's INSUEANCE IN ITALY. 
UNEMPLOYMENT INSURANCE. 



2013 



de las Cases, Ph.: Le chomage. Paris, 1909. 

Marchetti, Livio: Sistemi di difesa contro la disoccupazione. Milano, 1908 

Matteotti, M.: L' assicurazione contro la disoccupazione. Turino, 1901 

Society Umanitaria. Disoccupazione, coUocamenti, sussidi in Milano. Milano, 

Society Umanitaria, Milano. Ufficio del lavoro. Contro la disoccupazione Le 
casse di sussidio ai disoccupati e gli ufficii di coUocamento al e estero e in Italia 
Milano, 1905. 



J 



i 



CHAPTER IX, 



WORKMEN'S INSURANCE IN RUSSIA. 



2085 



> 



CHAPTER IX. 

WOEKMEK'S INSITEANCE IK EITSSIA. 
WTRODDCTIOH. 

.»lT^l''"^'if "!' development of the Russian Empire dates nracti 
to L^T. ' '*'^,"' '''' emancipation of the serfs^^ 186? "^tZ 
. to that date manufacturing was conducted mainly in artisans' shZ 

Tbor Tr^nf" 'f "^"^ ''^'^ «-«*-g mo'itremplo^ed S 

agricultural country. \he ru^;^^, .tZ^^^Z^lZ 
of 1897, constituted 108,811,626 out of a total of 125 640 o'l nr «« « 
per cent. Of the 33,201,495 pei^ons gainfuUy emplold ' is ;,:5 ^7 
or 55 per cent, were engaged in agriculture Together ^t'hS 

ptpltn! *'^^ "''''''''''''' ''''''•'''' - ''■' Pe-entfThti'S 

hafblrlJuter^iSi'Vf '*^/^^" ^'j^ ^''^^ "^ «"-- -^ustry 
lias Deen quite rapid. The urban population increased from 7 293 i fii 

Ter c?nuri897.''^ *"^' ^^^''^""'^' ^"^ ^«^«' *« lM28:To5f:r 'S 

According to the later census, the total number of persons emnlov^H 

in manufacturing and mechanical pursuits in 1897 wTs g^Stg 

and in transportation 714,745, making a total of 5,884 664 for lie 

llie table following shows the number and n^r .L/ t 
engaged in the various industries, accost thTcerut If fZ""^ 
N.MB.H ... r.. cK.r o™-if.«^.«- f ----- — 

ISource: P,.n.ier Racensement General de la Population de I'EmpIre de Bosde, ,897., 



Industry. 



Persons engaged in gainful occupations. 




Agricultural pursuits 
Professional service 
Personal service... 
Manufacturing and" 
mechanical pursuits. 
Transportation . 
^op^ercial pursuits.!! 
Another 



Total. 



16,159,118 

78G, 673 

2,958,070 

4,187,826 
692, 629 

1,331,581 
824,631 



26,940,528 



60.0 2,086,169 



202 140 
1,817,283 

982,093 

22,116 

299,408 

851,758 



2.9 
11.0 

15.5 
2.6 
4.9 
3.1 



lOaO 6,260,967 



33.3 

3.2 

29.0 

15.7 

.4 

4.8 

13.6 



100.0 



67725' 



18,245,287 

988.813 

4, 775, 353 

5,169,919 

714,745 

1,630,989 

1,076,389 



55.0 

3.0 

14.3 

15.6 
2.1 
4.9 
5.1 



33,201,495 



Members 
of families 
of persons 
engaged in 
gainful oc- 
cupations. 



75, 456, 277 
1.552,436 
2,748,943 

7,115,643 

1,236,265 

3,364,398 

964,564 




93,701,564 74.6 
2.541,249 2.0 
7,524,296 6.0 



12, 285, 562 
1,951,010 
4,995,387 
2,640,953 



9.8 
1.5 
4.0 
2.1 



100.0 92,438,526 125, WO, 021 100.0 



-VOL 2—11 38 



2087 



2088 



REPORT OF THE COMMISSIONER OF LABOR. 



The industrial development of Russia, as of any other country, 
manifested itself not only in the increase of the number of persons 
employed in industrial occupations, but also in the substitution of 
large manufacturing establishments for small, independent under- 
takings and the consequent growth of the wage-earning classes. 

The problem of workmen's insurance concerns itself mainly with 
the wage-earner and not with the independent ])roducer. For this 
reason the report pubhshed in 1906 by the Russian Government con- 
cerning the number of wage-earners in Russia, though based upon 
the data of the census of 1897, is of great importance. In the follow- 
ing table are shown the total number of persons employed as wa^^e- 
earners in various branches of mining, manufacturing, transportation, 
commerce, agriculture, and unskilled labor and service. 

NUMBER AND PER CENT OF WAGE-EARNERS OF EACH SEX. BY INDUSTRIES, 1897. 

[Source: Ministerstvo vnutrennykh diel. Chlslennost 1 Sostav rabochikh v Rossli na osnovanii dan- 
nykh pervoi vsoobshchei perepisi naselenia Rossilskoi ImperU 1897 goda. St. Petersburg, 19«.Hi.J 



Industry. 



Mininp: 

Miners. . 
Smelters . 



Total. 



Manufacturing: 

Textiles 

Animal products 

Woodworking 

Metal working 

Minerals 

Chemical products 

Beverages- 
Alcoholic liquors 

Other 

Food products 

Tobacco 

Paper and printing 

Instruments 

Jewelry, etc 

Clothing 

Building 

Carriages and wooden boats . 

other 



Total. 



Transportation: 

Post, telegraph, and telephone. 

Water transportation 

Railroads 

Carting 

other 



Total. 



Commercial pursuits: 

Commerce 

Hotels, restaurants, etc. ... 

Liquor trade 

Cleaning, laundry work, etc. 

Total 



Total wage- 
earners. 



163, 738 
42,638 



206, 376 



Males. 



Number. 



155,020 
40,940 



Per cent. 



94.7 
90.0 



Females. 



Number. 



8,718 
1,098 



195, 9G0 



95.0 



10. '116 



Percent. 



5.3 
4.0 



5.0 



530, 138 

74,270 

173, 043 

370, 933 

83, 138 

61,094 

38,723 

4,220 

194, 703 

27,994 

52, 175 

8,030 

25, 767 

326, 470 

345, 724 

8,793 

65, 357 



2,390,572 



5,463 

44,141 

175, 246 

118,423 

25,756 



310, 439 

71,246 

166, 295 

364, 720 

74, 469 

45, 247 

36,918 

4,035 

183, 941 

10, 020 

46, 550 

7,722 

25,213 

256, 8S9 

345, 724 

8. 708 

54; 029 



2,012.825 



58.0 
95.9 
96.1 
98.3 
89.6 
741 

95.3 
95.0 
94.5 
37.9 
89.2 
96.2 
97.8 
78.7 
100.0 
99.7 
82.7 



369, 029 



118,787 
76,970 
17,336 
42,495 

255,588 



5,439 

43,885 

162, 784 

117,761 

25,391 



355, 2C0 



113,171 
72, 206 
15,270 
il,751 

212, 458 



84.2 



99.6 
99.4 
92.9 
99.4 
98.6 



219, 099 
3,024 
6,748 
6,213 
8, 609 
15,847 

1,805 

185 

10,762 

17, 374 

5,625 

308 

654 

69,581 



25 
11,328 



96.3 



95.3 
93.9 
.18.1 
27.7 

83.1 



377, 747 



24 

256 

12, 402 

602 

305 



41.4 

4.1 

3.9 

1.7 

10.4 

25.9 

4.7 

4.4 

6.5 

62.1 

10.8 

3.8 

2.2 

21.3 



.3 
17.3 



13, 709 



5,616 

4,704 

2,(m 

30, 744 

43, 130 



15.8 



.4 

.6 
7.1 

.6 
1.4 



3.7 



4.7 

6.1 

11.9 

72.3 

16.9 



t 



? 



CHAPTEB IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2089 
NUMBER AND PER CENT OF WAGE^EARNERS OF EACH SEX. BY INDUSTRIES. 



Industry. 



Agricultural pursuits, etc.: 

Agriculture 

Cattle raising [[ 

Forestry 

Other rural industries 

Fishing and hunting 

Total 

Common (unskilled) laborers 

Servants: 

In institutions 

In factories, etc 

House servants (janitors, etc.) 
Domestic servants 

Total 

Grand total 



Total wage- 
earners. 



Males. 



Females. 



2,132,899 

411,817 

84,714 

57,990 

35,203 



2,722,623 



Number. 



1,467,302 

341,596 

83,404 

44,820 

32,331 



1,969,453 



1.094,848 



167,2^'0 

226, 743 

162,053 

1,55(),599 



809,426 



142, 700 
205,720 
160,089 
268, 086 



2,112,635 



776, 601 



9,151,671 I 0,330,983 



Percent.' Number. 



68.8 
82.9 
98.5 
77.3 
91.8 



665,597 

70,221 

1,310 

13, 170 

2,872 



72.3 



Percent. 



31.2 

17.1 
1.5 

22.7 
8.2 



753, 170 



73.9 



285,422 



85.3 
90.7 
9a 8 
17.2 



24,534 

21,023 

1,964 

1,288,513 



36.7 1,330,034 



27.7 



2a 1 



14.7 
9.3 
1.2 

82.8 



69.2 



2,819,088 



c;i.3 

Z(XS 



According to these census figures the wage-earners in Russia num- 
bered over 9,000,000, of whom about 2,400,000 were employed in 
manufacturing, 200,000 in minmg, and 370,000 in transportation, 
giving a total of nearly 3,000,000 for wage-earners in industry, in the 
narrower sense of the word. Agricultural laborers numbered over 
2,700,000, the servant class over 2,100,000, unskilled labor nearly 
1,100,000, and wage-earners in commercial pursuits (not includin<^ 
salaried employees) over 250,000. "^ 

As a matter of fact this number is not as great as it would be but 
for the limitation put in Russia upon the designation '' wage-earner" 
(zahocU). A great many persons who would be so designated in 
this country are classed with salaried employees in Russia, as, for 
instance, many railway employees. 

On the other hand, a comparison between the number of wac'e- 
earners and the total number of persons employed in various occu- 
pations demonstrates the existence of a very large number of small 
independent producers in various branches of industry, as, for 
instance, in textile, woodworking, metal working, clothing,' etc. 
This comparison, as made in the following table, shows that in'man- 
ufactures in general only 48.3 per cent of the persons occupied were 
wage-earners, and more than one-half were independent producers. 



2090 



EEPOKT OF THE COMMISSIONER OF LABOR. 



PROPORTION OF WAGE-EARNERS TO TOTAL NUMBER OF PERSONS EMPLOYED 

BY INDUSTRIES, 1897. ' 

[Source: Premier Recensement General de la Population de I'Empire de Russie, 1897. Relev6 General, 
St. Petersburg, 1905, Vol. II. Chislennost i Sostav Raboehikh v Rossii, St. Petersburg, 190G. Vol. 1.) 



Industry. 



Mining: 

Miners . . 
Smelters. 



Total. 



Manufacturing: 

Textiles 

Animal products 

Woodworking 

Metal working 

Mineral products 

Chemical products 

Beverages- 
Alcoholic liquors 

Other 

Food products 

Tobacco 

Paper and printing 

Instruments 

Jewelry, etc 

Clothing 

Building 

Carriages and wooden boats. 

Other 



Total. 



Transportation: 

I'ost, telegraph, and telephone. 



Water transportation. 

Railroads 

Carting and drayage . . 
Other 



Total. 



Commercial pursuits: 

Commerce 

Hotels, restaurants, etc 

Liquor trade 

Cleaning, laundry work, etc. 



Total. 



Agricultural pursuits, etc.: 

Agriculture 

Cattle raising 

Forestry 

Other rural industries. . 
Fishing and hunting. . . 



Total 

Common (unskilled) laborers. 



Servants: 

In institutions 

In factories, etc 

House .servants (janitors, etc.). 
Domestic servants 



Total 

Grand total. 



Number of 

persons 
employed. 



181,303 
47,560 



228,863 



959,584 
154,221 
410,126 
624, 954 
125,781 
76,869 

48,485 
8,740 

Si3,7»4 
31,485 
82,397 
23,391 
54,570 
1,168,865 

726,926 
14,400 

106,468 



4. 9.51, 056 



46,729 

71,057 

262, 180 

802, 956 

31,823 



714,745 



1,256,330 
154,470 

84,287 
135,902 



1,630,989 



16.668,134 

1.121,828 

125,756 

1^,807 

138,762 



18,244,287 



1.120,156 



167,240 
242,011 
l«i5, 650 

1.578,412 



2,153,313 



29,043,409 



Wage-earners. 



Number. 



163,738 
42,638 



206,376 



530,138 

74,270 

173,043 

370, 933 

83,138 

61,094 

38,723 

4,220 

194,703 

27,994 

52, 175 

8,030 

25,767 

326, 470 

3*5,724 

8,793 

65,357 



Per cent of 

persojis 
employed. 



90.3 
89.7 



2,390,572 



5,463 

44,111 

175,246 

118,423 

25,756 



369,029 



118,787 
76,970 
17,336 
42,495 



255,588 



2,132,899 

411,817 

84,714 

57,990 

35,203 



2,722,623 



1,094,848 



167,240 

226,743 

162,053 

1,556,599 



2,112,635 



9,151,671 



90.2 



55.2 
48.2 
42.2 
69.4 
66.1 
79.5 

79.9 
48.2 
66.6 
88.9 
63.3 
34.3 
47.2 
38.2 
47.6 
61.1 
61.4 



48.3 



11.7 

62.1 
(J6.8 
:i9.1 
80.9 



51.6 



9.5 
49.8 
30. 6 
31.3 



15.7 



12.8 

36.7 
67.4 
29.0 
25.4 



14.9 



97.7 



100.0 
93.7 
97.8 
98.6 



98.1 



31.5 



a Because of differences In classification this item could not be obtained; it is therefore assumed to be 
the same as the number of wage-earners. 



CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2091 

Along with the industrial development the problems of protection 
of workmen against the results of accidents, sickness, and old age 
have been growing in importance and have commanded increasing 
attention. 

The workmen's compensation act of June 2 (15), 1903, embracing 
all large industries, is perhaps the most important result in the 
domain of workmen's insurance. It has introduced a system of com- 
pensation of workmen against industrial accidents within a rather 
Umited scope. 

In the field of old-age insurance the existing provisions embrace 
almost exclusively the individual employees of the State. Of the 
private employees thus provided for the most important are the 
railroad employees, for whom old-age pension funds w^ere established 
in 1888. In view of the extensive undertakings of the Russian Gov- 
ernment, however, the existing old-age pension funds cover a very 
large body of industrial wage-earners. The pension fund for govern- 
ment railroad employees was organized in 1894, the fund for employees 
of the hquor monopoly in 1900, etc. 

Very much less has been estabhshed in the domain of provision 
agamst sickness, though the eariiest social labor legislation concerned 
itself with the care of the men in factories in case of sickness. Special 
laws concerning employees of certain state establishments were pro- 
mulgated early in the nineteenth century, and general provisions in 
the form of temporary regulations w^ere made in 1866, requiring the 
factory owners to furnish medical aid and if necessary hospital treat- 
ment to the sick employees. Thus from the very beginning the 
problem of medical treatment was separated from that of financial 
aid during sickness, and the burden of such medical treatment was 
placed upon the employer. Fairly satisfactory results were obtained 
in this branch of sickness insurance, but almost no progress was made 
in the other branch. 

Thus, the entire situation in regard to workmen's insurance in 
Russia may be summarized as follows : 

1. An accident compensation law of 1903, followed by a series of 
special law^s for various groups of government employees. 

2. The law of 1866 requiring the furnishing of medical treatment 
in factories (extended in 1886 to mines), and 

3. A series of special institutions for old-age and invalidity insur- 
ance and rehef mainly of government employees. 

In addition to these provisions for the welfare of the wage-earners, 
as established by laws and governmental decrees, there is in Russia 
but little that can be traced to voluntary efforts, either of the employer 
or of the employees themselves. 

Witliin the last few years, and especially since the estabhshment of 
the National Legislature, considerable activity has manifested itself 



i 



> 



2092 



REPORT OF THE COMMISSIONER OF LABOR. 



in the preparation of legislative proposals for comprehensive insur- 
ance systems, including all the three main branches of workmen's 
insurance, against accidents, sickness, and old age and invahdity. 
Such proposals were published in 1905, 1906, 1907, and 1908, and 
the last ones were formally introduced in the Duma and await the 
action of tliis body. 

ACCIDENT INSURANCE. 

EMPLOYERS' LIABILITY. 

The system of workmen's compensation in Russia grew out of the 
development of the idea of employers' liability. A consideration of 
the principles governing the Hability of employers for injuries sus- 
tamed by workmen in the course of their em])loyment is important, 
not only for historical reasons but because employers' Habihty still 
remains the only means of redress for workmen not included under 
the provisions of the law of 1903. 

Until the promulgation of this law the Russian code did not mclude 
any special law to determine the general principles of the employers' 
liability for industrial injuries. Such measures as passed prior to 
1903 were intended for rehef of definite classes of wage-earners, pri- 
marily state and railroad employees. The responsibility of employers 
for results of industrial accidents was based altogether upon the 
general provisions of the Russian code in regard to general responsi- 
bility for results of acts committed, whether criminal or not. Accord- 
ing to article 644 of Volume X, part 1, of the Russian code, a person 
guilty of committing a crime, whether with or without intent, must 
compensate for all losses directly caused by his act, and according 
to article 645 he must also compensate for all losses, even though 
very remote, if it be proven that the overt act was committed with 
the intent to cause losses to the victim of the act, while the following 
section exempts such losses as are caused by accidental acts, without 
intent and without any negligence. 

The sections of the code quoted apply only to criminal acts, but 
the failure to convict the person of any criminal act does not reheve 
him of the civil habihty for any losses caused by his acts, for this 
habihty is established by other sections of the code. Moreover, in 
these sections the civil responsibihty is much broader than that laid 
down in the sections mentioned above. Section 684 provides that 
"each person is obliged to compensate for damage and losses caused 
to any party by his act or omission, even if not criminal, provided 
he had not been forced to commit that act by demands of law, or of 
the Government, or in self-defense, or by a combination of circura- 
stances which he could not prevent." Furthermore, section 687 
establishes also the responsibihty of a person not only for his acts, 
but also for those of his agents, and that of a master for the acts of 
a servant. 



CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2093 

Taken together, articles 684 and 687 estabhsh the law of hability 
for injuries in general. They extend as much protection to the em- 
ployee as they do to the injured outsider, and this feature is the most 
characteristic one of the general Russian system of employers' Ha- 
bility. Special legislation in regard to special groups of employees, 
which will be stated presently, has extended the hability of employers. 
But any restrictions of the rights of the employees for compensation 
in case of accidents, as compared with the rights of outsiders, such 
as the doctrine of common employment or the fellow-servant doc- 
trine, are altogether foreign to the Russian law. 

In their application to industrial accidents and to employers' 
hability to their employees, these basic provisions of the law were 
considerably influenced by the decision of the Governing Senate, the 
highest judicial body of the land. According to these decisions the 
master is responsible for all acts of the servant which have been 
committed by the latter in the performance of liis duties. The prob- 
lem of negligence or fault does not enter into the discussion; the 
hability depending, according to the wording of the law, upon the 
question whether the accident was preventable or not, only non- 
preventable accidents forming an exception to the hability. Intent, 
or fault, or negligence may be important to determine the presence 
of criminal hability, but some definite act or omission and the pre- 
ventable nature of the accident are sufficient to establish the civil 
liability of the employer. 

Article 687 does not clearly establish upon whom the burden of 
evidence should fall, simply stating that the person shah not be 
hable for his act or that of his agent if it shall be proven that the 
accident was unpreventable. This proof then being a part of the 
defense, it was established by many decisions of the Governing Sen- 
ate that according to the general rules of civil procedure the plain- 
tiff may estabhsh his c laim by proving only the injury, the accident 
and the specific act of the employer or his agent causing the accident; 
and that the burden of showing the accident to have been unpre- 
ventable or that the agent was acting against his orders rests upon 
the defendant, being evidence to the rebuttal of the claim. 

In addition to the general liability of a person for the results of 
his acts or omissions, the Russian code also estabhshes definite 
principles as to the limits of this hability. After the general fact of 
hability has been established the same compensation is due whether 
the act had been a criminal one or not; in other words the amount 
of compensation does not in any degree depend upon the nature of 
the act which had caused the loss. In general the compensation 
must be equal to the loss sustained; therefore the law requires that 
in case of a fatal accident the person liable for the accident shall give 
means of support to the widow of the deceased until remarriage, to 



2094 



EEPORT OF THE COMMISSIONER OF LABOR, 



the dependent parents until death, to the sons until of age, and to 
the daughters until marriage, etc.; the person liable for the accident 
must cover the cost of medical treatment until recovery or death and 
funeral expenses, cost of support of family and dependents <luring 
illness, and a pension for life in cases of permanent, partial, or com- 
plete disability to earn a living. While the definite amounts of the 
pensions, depending upon the earnings of the injured or deceased is 
determined by the courts, the law provides that the compensation 
for loss of earning power must be in the form of annual payments, 
and, according to a senate decision, the plaintiff has no right to 
demand a lump-sum payment. This does not prevent a j)eaceful 
settlement by a lump sum outside of the court. 

POLAND AND THE BALTIC PROVINCES. 

The liability laws described above do not apply to the entire 
Russian territory, the 10 provinces constituting Russian Poland and 
the three Baltic provinces of Livonia, Esthonia, and Courland being 
exempt from the provisions of Volume X of the Russian code. 

The French Civil Code is in force in Poland. Here, too, the 
employers' Uability until 1903 was based mainly upon the general 
liabiHty of a person for damages caused by his act or omission, by 
negligence or carelessness, or by the acts or negligence, etc., of his 
servants when committed in the performance of their duties. The 
law of 1903 provides that a contractor is responsible for the acts of 
his employees. This does not permit the exemption from liability 
because of the unpre vent able nature of the accidents and the liabiHty 
is better established than in the Russian code proper, the defense 
being that the negligence of the servant did not take place duiing the 
performance of his duties or execution of the master's orders. 

A special civil code is in force in the Baltic j)rovinces. According 
to this code, the employers' liability for damages sustained by his 
employees is also based upon the general liability laws. Wliile the 
provisions are very strict in regard to the liability of a person for his 
personal acts only, the responsibility of a master for the act of his 
servant is subject to the proof of the servant's unfitness for his posi- 
tion. The law clearly acknowledges the doctrine of contributory 
negligence in denying the right to recover where the plauitiff by 
proper care could have prevented the accident. 

It appears that the status of employers' liability throughout the 
greater part of the Russian Empire, as based upon the law inter- 
preted by the senate decisions, was considerably more favorable to 
the injured employee than is that under English common law. The 
fellow-servant doctrine was unknown and the doctrine of contribu- 
tory negligence had a very limited application, the Governing Senate 
having estabhshed by its decisions that in cases of negUgence on the 



V 



I 



CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2095 

part of both the employer and the injured employee the latter is 
entitled to partial compensation. The law provides that the com- 
pensation shall be in the form of annual payments. 

With all that, the usual drawbacks of a liability system appeared. 
The great number of injuries due to the unavoidable negligence of 
the employees themselves, especially in view of the low educational 
standard of the Russian workman, and many other accidents, un- 
avoidable because of the conditions of work, or caused in some way 
which it is difficult to explain, were necessarily left uncompensated. 
Even in those cases which clearly came under the provisions of the 
liability laws protracted litigation was necessary; but Utigation was 
very difficult for the Russian workman and therefore settlements for 
small amounts were usually effected even in those cases where the 
liability of the em])loyer was evident. 

LIABILITY OF RAILROAD AND STEAMSHIP COMPANIES. 

The hazardous nature of the occupation of railroad and steam- 
ship employees has in most countries brought about special legislation 
extending the Uability of the employers in these industries for 
injuries to employees long before general compensation or liability 
legislation was adopted. This habihty was estabhshed by the act of 
May 12 (24), 1852, which referred only to railways and to accidents 
happening in the movement of trains, and closely followed Prussian 
legislation of 1838. The law was amended and extended to steam- 
ship companies in its present form in 1878, and in this connection 
may be mentioned the general railroad law of June 12, 1885. In 
section 683 no distinction is drawn between injuries to employees 
and passengers or outside persons, so that the rights of the employees 
are not specially safeguarded, nor are they, on the other hand, less 
protected than those of the passengers. It is stated by Russian 
authorities that the law was originally passed with the view of pro- 
tecting the passengers and that the employees were brought under 
the section of this law by judicial decisions. (") 

Section 683 provides that the proprietors of railroads or steamship 
hues, whether it be the Government, corporations, or private indi- 
viduals, are required to compensate all persons injured or killed 
because of accidents in the operation of such properties, unless they 
can prove that the accident was (1) not due to the fault of the pro- 
prietors or their agents, or (2) that it was due to action of forces 
which could not be overcome — i. e., to vis major. It further provides 
that all agreements or conditions contrary to this provision are 

a Otvietstvennost predpriminatelei za uviechia i smert rabochikh. V. P. Litwinov- 
Falinskii. St. Petersburg, 1900. 
Smert i uviechie pri exploatatzii zheleznykh dorog, F. Osetzki. St. Petersburg, 



2096 



REPORT OF THE COMMISSIONER OF LABOR. 



illegal and nonenforceable; the compensation granted must be in 
accordance with the amount of damages sustained, and may ])e either 
in the form of a lump-sum payment or of a pension payable annually 
or at other intervals as the injured person might desire; further, that 
in case of such pensions the amount may be reconsidered and changed 
by the courts, upon application of either party, whenever new con- 
ditions arise justifying such a measure. The method of compensa- 
tion is further regulated, according to which the person adjudged 
responsible for injury or loss of life must provide the cost of treat- 
ment, funeral expenses, and means of support of family until recovery, 
and pensions to all the dependents; but the right of demanding a 
pension is limited to the widow, sons until majority, and daughters 
untd marriage. 

The practical application of this law is regulated to a great extent 
by senate decisions. These have established (1) that by the term 
''operation" C exploitation^') should be meant not only the actual 
movements of the trains or steamers, but all work of the employees in 
connection with the railroad business. The statement of the law 
excepting accidents "not due to the fault of the management of the 
enterprise or its agents" ma^' seem to have preserved the dependence 
of the right of compensation upon the employers' fault or negligence, 
but by numerous decisions the governing senate has interpreted this 
phrase to mean " due to the fault of the injured person or to that of an 
outsider." The burden of establishing such a fault or act of negli- 
gence is clearly placed by the law upon the employer. Thus there is 
no doctrine of fellow-servant. The entire responsibility for trade 
risk is thrown upon the employer, and the development of a doctrine 
of contributory negligence, of which slight traces might ha\ e been 
found in the exception quoted, was prevented by senate decisions 
clearly establishing that such contributory negligence reduces tlie 
amount, but does not altogether destroy the right of compensation. 
Thus only three groups of accidents remain beyond the scoj)e of the 
law — those due to gross negligence of the injured, to negligence of 
outside parties, or to ''vis major." 

The law was amended on May 30 (June 11), 1888, to the effect 
that in giving judgment in favor of the plaintiff the amount of com- 
pensation paid over to the injured or his heirs by the railroad em- 
ployees' pension, saving, and benefit funds must be discounted. 
Such benefit funds were made obligatory for all private railroad 
companies by the law of May 30 (June 11), 1888, while a general 
pension fund for the employees of tlie state railroads was estab- 
lished by an act of June 3 (15), 1894. These funds will be discussed 
in a later section. It may be noticed here that since obligatory con- 
tributions by the employees constitute the main source of income of 
these funds, this last provision throws back upon the employees the 



• 



CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2097 

greatest share of the burdens which, according to article 683, devolves 
upon the employer. 

On the other hand, in case of total disability the injured emplovee 
receives a hfe annuity of three-fourths his annual salary. If the 
permanent disabihty be such as to disqualify him from further 
employment in railroad service, while permitting some other gainful 
occupation, then the compensation, in the form of an annuitv, 
depends upon the length of previous service, being one-third of his 
annual salary for not over fifteen years of service, one-half of his 
salary in case of previous service of over fifteen years but not more 
than twenty years, and three-fourths if the injured person had been 
in the service for over twenty years. In case of a fatal accident the 
widow of the deceased employee receives one-half of tlie pension to 
which her husband would have been entitled if totally disabled. An 
important distinction between the ordinary systems of compensation 
for accidents and the activity of these pension funds is found in 
the provision that after death of the husband while a pensioner for 
disabihty, the widow receives a pension equal to one-half of his. 

Each child surviving a fatally injured employee receives from 10 to 
15 percent of the pension he would have received if alive but totally 
disabled, and each child surviving a pensioner receives 10 to 15 
per cent of the pension he received, the proportion differing in the 
pension funds of different railways; but the total amount of pensions 
to children must not exceed 50 per cent of the pension of the deceased, 
so that the family of the deceased employee may receive together an 
amount equal to his pension. 

HISTORY OF THE GENERAL COMPENSATION LEGISLATION. 

The problem of compensation of workmen for industrial accidents 
has been attracting the attention of Russian authorities as well as 
of the Russian manufacturers since the beginning of the eighties, and 
the efforts for its solution may be divided into three classes: (1) The 
elaboration of plans for a general comprehensive law in legislative 
institutions; (2) organization by the various departments' of the 
Government of systems of compensation or insurance for special 
groups of workmen, mainly those engaged in state mdustries; and 
(3) voluntary efforts made by employers toward insurance of work- 
men, partly for humane and partly for business reasons. 

The history of the legislative efforts will be discussed in the following 
section. The early special legislation concemmg the government 
employees will be discussed in connection with the chapter devoted 
to that topic, and the history of voluntary accident insurance will 
also be treated separately. 

Under the old regime of Russia prior to the granting of the con- 
stitution of 1905, legislative proposals were elaborated by the various 



2098 



EEPORT OF THE COMMISSIONER OF LABOR. 



administrative departments, and presented through the Imperial 
Council to the Emperor for his approval. As early as 1859, and 
several times smee, commissions were created within the Ministry of 
Finance for revision of factory laws which, among other thuigs, pre- 
pared drafts of a law defining employers' habihty for industrial 
accidents, but the plans of these commissions never reached the stage 
of discussion m the Imperial Council. 

In the development of the principle of compensation of workmen 
for results of industrial acci«lents, a considerable stimulus was given 
by the employers themselves. 

As early as 1881, i. e., about three years before the German system 
of insurance against accidents was established, the influentia] Society 
for Encouragement of Russian Industry and Commerce elaborated 
a plan for obligatory state insurance of workmen against accidents, 
which guaranteed compensation for all injuries, unless incurred 
voluntarily, and placed the entire burden upon the employers, i. e., 
the industry. The plan was presented to the minister of finance' 
but did not proceed any further. ' 

In the same year the congress of mining operators in KJiarkov 
organized a mmers' aid fund. In 1893 a petition was presented by 
the manufacturers of Moscow for a universal compulsory system of 
state insurance, to be reahzed by a tax upon the employers, and 
managed entirely by the governmental authorit ies. This feeling was 
not universal, for in the same year the publication of Von Witte's 
plan for employers' habihty legislation called forth a formal protest 
from the '^Congress of Mine Operators of Southern Russia and 
Poland," which was indorsed by the Council of Iron and Steel Manu- 
facturers' Association. The whole subject of employers' liabihty 
workmen's compensation, and compulsory insurance received a very 
prolonged and thorough discussion at the Pan-Russian Congress of 
Commerce and Industry, held at Nizhni Novgorod in August of 1896 
in connection with the Pan-Russian Exposition. Two sessions of the 
congress and an entire volume of its reports were devoted to the con- 
sideration of the question of workmen's insurance. The board of 
the Moscow bourse forwarded a resolution favoring state compensa- 
tion to the workmen for injuries caused by industrial accidents by 
a system of compulsory state insurance, the cost to be put upon all 
industrial establishments, by means of a tax upon the wage expense 
or the number of workmen, and proportionate to the degree of 
hazard presented by the various industries; two other chambers of 
commerce presented similar rosolutions, proposing, however an 
equal distribution of the burden between the employer and emi)loyee 
During the discussion of the problem at the session of the congress 
the strong preference of the manufacturers for a system of insurance 
as a^amst employers' liability strongly asserted itself, and the congress 



V 



CHAPXEK IX. — workmen's IKSUHANCE IN BUSSIA. 2099 

resolved that "of the two methods of compensating workmen a.'ainst 
accidents— workmen's insurance or a special employers' ha^bility 
law— the system of insurance must be declared the more perfect one " 
Further, the congress resolved that "from the point of view of tie 
interests of the employees as weU as of the employers, the best method 
of providmg for the worker disabled either through accident, sickness 
or old age from earning a living would be such a system of compul- 
soiy insurance of the workers, which was not conducted for commer- 
cial profit and therefore should be placed under state supervision • it 
should not be limited to employees in factories and mills, but should 
include all workers employed in industrial activity. Should however 
the organization of a system of compulsory insurance under stat^ 
supervision be found impossible in the immediate future, then it 
_ would be highly desirable that the employers make efforts to provide 
for insurance of their employees either in the existing private insur- 
ance companies or by organization of mutual insurance societies 
the possibihty of entry to which should be afforded to the proprietor^ 
of the small mdustrial establishments." Furthermore, the con-ress 
recognized that the existing legislation in regard to employers' 
liability was very deficient in that it did not conclusively establish 
the employers' hability for the trade risk of employment, and that 
for this reason private insurance must supplement existing legislation 
and specifically include the results of trade risk. 

Thus the congress of commerce and industry recommended a 
material extension of the workman's rights for compensation This 
recommendation may be explained by the statements made at the 
congress that a few heavy judgments of court in favor of the injured 
employees or the families of employees killed have demonstrated to 
tbe employers the preference of insurance over liability. The heavy 
cost of litigation was also felt by many manufacturers. Besides 
with the introduction of insurance in one establishment the demand 
for It often spread rapidly through the whole industrial district the 
workmen discnmmating against employers who refused to pro'vide 
for such insurance. The constant litigations were admitted to lead 
to strained relations between the employers and employees, which 
were destructive of factory discipline and efficiency. Besides many 
representatives of large industrial establishments and almost all the 
representatives of the smaller establishments admitted that the danger 
of possible accidents, with the heavy burden of damages, was a dis- 
turbing factor in the calculation of cost of production, and that insur- 
ance was preferable, as it permitted an estimate of this element of 
cost. 

Under the influence of the memorial of the Society for Encourage- 
ment of Kussian Industry and Commerce, presented in 1881, the 
Council of Commerce and Manufactures, under the Ministry of Finance 



-L....^ 



2100 



BEPORT OF THE COMMISSIONEB OF LABOE. 



J 



was charged with the duty of preparing a draft of an employers' 
liability law. This draft was finally presented to the Imperial Council 
in 1889 by the minister of finance. This was the first important 
effort at a solution of the problem of industrial accidents. 

The plan, while it proposed to establish a fairly Hberal system of 
compensation, similar to that of the German law, up to a pension of 
60 per cent of the earnings in cases of fatal accident, and even a pen- 
sion equal to the full earnings in cases of total disabihty, on the other 
hand it strictly Hmited the hability of the employer to cases of his 
well-established negligence or that of a superintendent, thus virtually 
establishing a fellow-servant doctrine. Another provision of the bill 
placed upon the plaintiiT the entire burden of proof of such negligence. 
Thus the plan decidedly limited the rights of the workman as they 
existed under the general laws; far from relieving the injured work- 
man from the expenses of a court trial, it would tend to create condi- 
tions under which the legal battles would have to be more persistent, 
and reduced the chances of the workman for a favorable private 
settlement. 

The bill was therefore a step backv/ard in the development of 
employers' Habihty and did not meet with the approval of the 
Imperial Council. The ministers of justice, of interior, of state 
domains, and of ways of communication raised objections. 

This draft was referred back to the Ministry of Finance and in a few 
years a new draft was elaborated and introduced in the Imperial 
Council by the minister of finance, on March 15 (27), 1893. 

This plan was in many respects much more thorough than that of 
1889. It extended the habihty of the employers to all accidents 
except those due to vis major, to actions of third parties, or to mali- 
cious intent or fault of the injured; in other words, the scope of 
liabihty was made practically equal to that of the railroad and steam^ 
ship companies. The last limitation was undoubtedly an important 
one, but the burden of proof of the employee's fault or negligence was 
placed upon the employer, so that a considerable share of the trade 
risk was shifted, while in the plan of the bill of 1889 it rested ui)on 
the workman. Contributory negligence of the injured did not alto- 
gether relieve the employer of the responsibility, the draft providing 
that in such cases the courts could reduce the normal compensation 
by one-fourth to one-half. The plan of 1893 also applied to all 
employees, while the preceding project was limited to wage-workers 
only. Finally, it contained an important innovation in classifying 
trade diseases with injuries due to industrial accidents. 

In the general scheme of pensions and allowances to the injured or 
his family the new plan followed quite closely after the old, with 60 
per cent of the annual earnings of the injured as a maximum pension. 
It provided for peaceful agreements between both parties, from which 



; 



i 



I 



CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. 2101 

there was no appeal, and for suits in common courts when no peaceful 
settlement was possible. Yet the large opportunity for htigation was 
evident, especially in view of the provisions in regard to contributory 
negligence. On the other hand, the liberal inclusion of the trade 
diseases called forth strong opposition among the manufacturers of 
St. Petersburg. 

This plan did not meet with approval and was returned to the 
Ministry of Finance for further changes. The demand for legislation 
grew with the development of industry, and the discussion showed a 
considerable part of the manufacturers of Russia not unfavorable- 
disposed to some regulation of this ])roblem. In a few industrial 
centers the manufacturers organized mutual companies for insurance 
of their employees, and the Habihty assumed by these companies was 
much broader than that imposed by the laws. The activity of the 
manufacturers of Riga, which will be described in a later section, was 
very important in that connection. 

In the spring of 1899 a new legislative scheme was announced by 
the Mnistry of Finance. This plan bore evidence of the influence 
exerted by the Riga Mutual Insurance Company system. In fact, 
section 2 of the project of 1899, which contains an enumeration of 
exceptions to the liabihty of employers, repeated word for word the 
corresponding section 3 of the Riga society's by-laws. It excepted 
injuries due to accidents caused by (1) unpreventable and unex- 
pected external forces (vis major), (2) acts of outsiders, who have 
no connection with the management of the industrial establishment, 
(3) such intentional acts of the fellow-servants as are not connected 
with the nature of the work, and (4) mahcious intent of the injured. 
The by-laws of the Riga society stated ''gross negligence of the 
injured,'' for which the legislative plan of 1899 substituted ''malicious 
intent," thus hmiting substantially the range of excepted cases. 

The law was to apply to workmen and technical employees. Only 
factories were covered by the bill. Workshops emplojdng less than 
15 men and no mechanical power, mines, quarries, metallurgical estab- 
hshments, agricultural, structural, and transportation employees were 
not included. Compensation oifered included besides medical treat- 
ment an allowance of 50 per cent of the daily wages for temporary 
disabihty; a pension amounting to two-thirds of the annual earning 
for complete permanent disabihty and a proportionate sum in cases 
of partial disabihty, while the Riga society offered 75 per cent to the 
married victims in similar cases; in cases of death the widow and 
cliildren were to receive the same rate of compensation as under the 
Riga system, i. e., 30 per cent of the earnings to the former and 15 
to 20 per cent to the latter. The new proposal extended the right to 
compensation not only to dependent parents, but also to dependent 
grandparents, brothers, and sisters, but the maximum was the same, 



2102 



BEPOET OF THE COMMISSIONER OF LABOB. 



and the claims of these relatives were recognized only in so far as the 
immediate family was not entitled to the 60 per cent maximum. 

After four years consumed in tlie elaboration and adaptation of 
this plan, with vital changes, the final draft was approved June 2 (15), 
1903, and went into effect on January 1 (14), 1904. 

WORKMEN'S COMPENSATION— PRESENT STATUS. 

The workmen^s compensation act is entitled "Rules concerning the 
compensation of workmen and employees injured through accidents, 
as well as members of their famihes, in manufacturing, mining, and 
metallurgical estabUshments.'' It was accompanied by an extensive 
"Opinion of the Imperial Council'' of the same date, containing 
amendments and modifications. Since that date many decrees and 
enactments in regard to this matter have been announced, and the 
entire law may be said to be still in the formative state. 

Instructions to the factory and mine inspectors, referiing to the 
details of the execution of the law, were approved by the ministers of 
finance and of agriculture and state domains on December 13 (26), 
1903, and instructions to the police were issued by the central office 
of factory and mine inspection on March 5 (18), 1904. Instructions 
to physicians concerning the methods of determining the degree of 
disability were elaborated by the medical council of the Ministry of 
Interior, and approved by the latter on June 5 (18), 1904; new regu- 
lations regarding the collective insurance of workmen or the insurance 
of employers against their civil Uability, harmonized with the new 
legislation, were approved by the minister of interior on December 
22, 1903 (January 4, 1904). 

By numerous acts the action of law was extended to various state 
estabUshments: To the workmen and civil employees of tlie artillery 
service, on June 9 (22), 1904, in effect January 1 (14), 1905; to the 
workmen and employees of manufacturing, mining, and metallur- 
gical establishments of the Crown (i. e., the personal property of the 
Emperor and the imperial family), June 6 (19), 1905, in effect Decem- 
ber 25, 1905 (January 7, 1906); to employees of the government 
printing office on December 19, 1905 (January 1, 1906), in effect July 1 
(14), 1906; and of the senate printing office, March 6 (19), 1906, in 
effect July 1, 1906; of the navy yards, March 6 (19), 1906, in effect 
July 1 (14), 1906; and of the governmental industrial establishments 
connected with the department of ports and harbors, April 19 (May 
2), 1906, in effect October 1 (14), 1906. Further extensions must 
follow to include all the industrial undertakings of the Government. 

INDUSTRIES COVERED. 

The apphcation of the act is strictly limited to factories, mills, 
mines, and metallurgical establishments. Large sections of the work- 
ing population are excluded, namely, the transportation employees 



CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2103 

(for whom special provisions exist, partly in section 683 of Volume X, 
part 1 of the code, as explained above, and partly in the pension and 
aid funds, which will be described elsewhere), the agricultural laborers, 
the building trades, and the commercial employees. Factories, mines, 
and metallurgical estabUshments owned by provincial governments 
and municipahties are included. Specifically excluded were indus- 
trial establishments of the Central Government, the workshops and 
other industrial establishments of private railroad and steamsliip 
companies, but the heads of the various ministries were instructed to 
present within one year after the law went into effect, i. e., after Jan- 
uary 1, 1904, plans for extension of this law with necessary modifica- 
tions, to the various state industrial estabUshments. Accordingly the 
main provisions of this law were extended to various governmental 
establishments, namely, all factories, mines, and metaUurgical estab- 
Ushments which are personal property of the Emperor and the entire 
imperial family (so-called of his majesty's cabinet and the Crown), 
workmen and civil employees of the artillery, the government printing 
office, senate printing office, navy yards, and the industrial establish- 
ments of the department of ports and harbors, tliis latter group 
including also construction work. As yet the law was not extended 
to transportation companies. The extension of the law to the state 
and crown establishments is accompanied by modifications, more or 
less uniform, wliich makes it preferable to treat these establishments 
separately. 

The essential limitation of the law is found in the term '"factory." 
The Russian law recognizes two classes of manufacturing establish- 
ments, factories and ''artisans' shops'' (remeslennya zavedenia). 
The latter are not mentioned in the law and therefore are not subject 
to it. But the definition of a factory, contained in the Russian law, 
is not sufficiently specific; factories and mills are stated to differ 
from artisans', shops in that they are large establishments using 
mechanical power, while artisans have none except hand machinery 
and tools. The decision in practice is left to administrative officers, 
and practically the law extends over all manufacturing estabUsh- 
ments using machinery and mechanical power. 

An exception is found in the exclusion of so-called rural industrial 
establishments. This includes a large class of certain smaU establish- 
ments located outside of city limits, namely, brick and tile yards, 
cement and starch factories, turpentine stills, wood distilleries, 
creameries, cheese factories, even if utilizing mechanical power, pro- 
vided they do not employ more then 20 workmen, sawmills with only 
one mechanical saw, flour mills with four or less millstones, or only 
one rolling stone, wine presses, and a few other smaU rural industrial 
establishments. 



67725°— VOL 2—11- 



-39 



2104 



BEPORT OF THE COMMISSIONEK OF LABOR. 



PERSONS COMPENSATED. 



'c 



Within the industries and establishments mentioned, the law 
applies to all workmen as well as to employees, such as foremen, 
engineers, and superintendents, whose duties bring them in contact 
with the processes of industry, provided tJieir salary, inclusive of 
shares in profits, board or lodging, does not exceed 1,500 rubles 
($772.50). All workmen and employees excepted from the applica- 
tion of this law preserve the right of action under the general laws 
of liability, which are not available to workmen covered by the new 
act. 

INJURIES COMPENSATED. 

All injuries due to accidents occasioned by or on account of the 
work, and causing disability for more than thiee days or death, must 
be compensated, unless caused by the injured person himself either 
intentionally or through gross negligence, such as can not be justified 
by the conditions of work, while the burden of proving such malicious 
intent or gross negligence, which would relieve the employer from 
the duty of compensation is definitely placed upon the employer. 

The act is broader than the plan of 1899, in one respect that it 
has discarded the provision excluding injuries caused intentionally 
by coemployees; on the other hand, it has excluded injuries caxised 
by gross negligence of the injured, a provision which the plan of 1899 
discarded when it copied the entire section from the by-laws of the 
Riga Mutual Insurance Company. 

BURDEN OF PAYMENT. 

The duty of compensation is placed entirely upon the employer. 
Subcontracting the work to a third party does not relieve the employer 
from the responsibility, but an order given to another independent 
establishment is not considered subcontracting. All agreements 
between employers and employees entered into before the occurrence 
of the accident, waiving the employees^ right to compensaticm under 
this act, are illegal and not enforceable. 

METHODS OF COMPENSATION. 

Two methods of compensation are provided — allowances for tem- 
porary disabilit}'- and pensions for permanent disability or death. 
Only those injuries which cause disability lasting more than three 
days entitle the injured to an allowance, but it is computed from the 
day of the injury. The daily allowance is equal to one-half of the 
actual daity earnings of the injured. In addition to this allowance 
the employer must either furnish the injured person with free medi- 
cal treatment, or reimburse him for the cost of such until full recov- 



/ 



CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2105 

ery, or as long as treatment is continued, at the rates charged in local 
governmental or municipal hospitals. This allowance and medical 
treatment constitute all the compensation in cases of temporary 
disability. 

In its initial stages, i, e., until the permanent nature of the disa- 
bility and its extent is determined, every case of permanent disa- 
bility is treated exactly like a case of temporary disability, i. e., the 
injured person receives the medical treatment, and the allowance. 
This is followed by a pension when the permanent nature of the disa- 
bility is determined. When the disability is complete, the pension 
amounts to two-thirds of the annual earnings of the injured. In 
cases of partial, though permanent disability, a smaller pension is 
granted, proportionate to the degree of disability. The pension fol- 
lows immediately after the allowance, and when the amount of the 
pension is greater than that of the allowance the computed differ- 
ence for the time elapsed since the day of the accident must be paid 
to the injured. 

When the injury is fatal, or results in death within two years, or 
even later, but while the injured is still under treatment, the employer 
must pay for the funeral expenses, 30 rubles ($15.45) for an adult 
and 15 rubles ($7.72) for a minor, and provide pensions to the mem- 
bers of the family of the deceased, as follows: 

The widow receives a pension equal to one-third of the annual 
earnings of the deceased until her death or remarriage; in the latter 
case she receives in settlement of all her claims one payment equal 
to three times the amount of her annual pension. The children under 
15 years of age, whether legitimate, legitimatized, illegitimate, or 
legally adopted, are each entitled to a pension equal to one-sixth of 
the annual earnings of the deceased, when the other parent survives, 
or one-fourth when both parents are dead. But when both parents 
are killed as a result of industrial accidents, the children receive the 
sum of pensions to which they are entitled because of the death of 
each parent. Tlie total sum of pensions must not exceed 66§ per 
cent of the annual earnings of the deceased, and where the pensions 
of the widow and children, computed as above, would exceed this 
limit, the shares of all are proportionately reduced. But if the 
deceased leaves no family, or if this maximum is not claimed by 
the immediate family, the relatives in an ascending line, and 
orphan brothers and sisters under 15 years of age, are entitled 
to pensions of 16§ per cent each, or an equal share of as much 
as is left after satisfying the claims of the widow and children, 
provided these relatives had previousl}^ been dependent upon the 
deceased. But changes in the family, subsequent to the granting of 
the pensions, do not lead to a rearrangement of the pensions, with 
the single exception of a birth of a legitimate child. 



2106 



REPORT OF THE COMMISSIONER OF LABOR. 



When the deceased workman is a foreign subject only those mem- 
bers of the family are entitled to a pension who at the time of the 
accident resided in Russia. 

All allowances and pensions paid under this law are exemj^t from 
any attachment, whether for taxes or private debts, and &ve non- 
transferable. 

LUMP-SUM PAYMENT. 

The law permits substitution of a lump-sum payment for the pen- 
sion of the injured or of the relatives of the deceased, by mutual 
agreement of both sides, provided it is computed as follows: In case 
of pension for disabihty, ten times the pension of the injured, and 
when the injured is under 17 years of age, ten times the pension to 
which he would be entitled at 17; in case of pensions to relatives of 
a deceased employee, the adults may receive ten times the .pension, 
and the chidren as many times their pension as it has years to run^ 
but not over ten. When such agreement is made after the payment 
of the pension has commenced, the amounts previously paid may be 
deducted, provided they do not constitute more than one-third of 
the lump sum. Such agreements for the substitution of a lump sum 
may be approved by the proper authorities, and without such ap- 
proval these agreements are not binding and do not deprive; the 
beneficiary of the right to demand additional compensation through 
the courts. A substitution of a lump sum is obligatory in case "of 
injured workmen who are foreign subjects, when they or members 
of their famihes, receiving pensions, leave Russia.' In compensation 
for all future claims a sum thrice the pension must be paid to them, 
unless the pension expires in less than 3 years, when a full payment 
for the remaining period must be made. 

DETERMINATION OF DEGREE OF DISABILITY. 

The difficulties accompanying the exact deternu'nation of the degree 
of disabihty by the permanent results of the injury became manliest 
in the very beginning of the apphcation of the law, and the medical 
council of the Ministry of Interior was instructed to elaborate a set 
of rules for the guidance of the physicians. These rules were approved 
on June 5 (18), 1904, and published on October 29 (November 11) 
1904. ^' 



^1 



CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2107 

TABLE FOR DETERMINATION OF DEGREE OF DISABILITY DUE TO INJURIES CAUSED 

BY INDUSTRIAL ACCIDENTS. 

^^^^^f • ^?^°^ ° yosnagrazhdenii rabochikh, poterpevshikh ot neschastnvkh sluchaev so vsiemi iz.lin 
PeSJsburgN'^^7/| '' ^^^'"^'^'^^^^ ' administrativnymi rasporiazheniami, E M*. DeSe^Uev; st 



Disa- 
bility 
num- 
ber. 



8 

9 

10 



11 
12 
13 



i4 



15 



16 

17 
18 
19 



20 



Nature of disability. 



Per cent 
of disa- 
bility. 



I. Head. 

Injuries to skull, resulting In CTave and permanent pathological phenomena (insanity 
paralysis, epileptic attacks, lass of special senses, grave neuralgia) unsaniiy. 

Injuries to skul| resulting in severe headaches, with decrease of m'lisburar'strenrtii'of 
upper extremities or less freguent epileptic attacks "^uiar M,rengtn oi 

Ss Si""^ ^ ^^^^' ^^^^^°^ '^ attacks of lesser severity, "such ^"veitigorh^ 

or work in such a position of the body as the trade of the injured perin demands 
Concussion of the brain with less serious consequences i^i^u uemanus . . . . 

Incurable mental diseases 

^raemSr^"""^^ disturbances of mental abYlitY^"(Weakening of intellect", weakening of 



II. Eyes. 



Double (complete) loss of sight *" 

Loss of sight in one eye (a) '.'..'.. 

The weakening of eyesight is determined according to Josten's table.' 



III. Ears. 

Complete deafness of both ears 

Complete deafness of one ear 

Chronic inflammation of internal or middle earjwith'discharge 



IV. Face. 



l^I^f' '^°^».^*^gA"'""^^i<inal disarrangements, such as inverted evelids, with in«;ufri- 
cient covermg of the eye, lachry .nation, stricture of nasal passages and oSntne Sn- 
traction of mouth opening, partial immobility of lower jaw, etc openmg, con- 

tai°L"ranymen&."^.^'.''^'^^ ^**^"'" ^^*^'^' bones,- resulting in f unci- 



100 

70 

30 

85 

60 

100 

50 



C) 



100 
35 



50 
10 
25 



V. Neck. 



^""SyaVt^fK^: °'.''°^.°**'^' '"^"""^ ^ *^^ "^''^'' necessitating constant wearing of 

Lo^ of speech due to injury to vocalor speaking orgaiis 

Difficulty in speaking 

Difficulty in breathing because of a permanent contraction of iarynx ..'!!.".'.*!.' i !!!! [i! ' 

VI. Chest. 



Reduction in mobility of the chest after injury- 
Severe "^ 

Moderate 

Slight .".'.'.".'.'."".'.■.■.".";." 



nl i^fr^i^t^^'^ ^^"^I ^"^ I*^ of eye. Loss of one eye in absence of the other is equal to 100 ner 
fjJ^;„^Lf^^l^. ^!i"L^°L«^j7..^«5"Plete blindness but such diminution of sight tSat the ahili?t'i 



35 
35 



50 
40 
10 
40 



40 
20 
10 



to distinguish the form of near objects 
6 Josten's table- 



. ^ ,- r cent, 

sight that the ability is lost 



S. 



0.50 
.40 
.30 
.20 
.10 
.00 



0.50 



0.40 



0.30 



0.00 
6.50 
13.50 
20.00 
26.50 
33.50 



6.50 
14.50 
22.00 
30.00 
38.00 
46.00 



13.50 
22.00 
3L50 
41.00 
50.50 
60.00 



0.20 



0.10 



0.00 



20.00 
30.00 
41.00 
52.00 
62.50 
73.50 



26.50 
38.00 
50. .50 
62.50 
75.00 
87.00 



33.50 
46.00 
60.00 
73.50 
87.00 
100.00 



of^oss of vision. Ihus, when the vision in one eye is 0.20, ami in the other 0.10, the disability is 62.50pS 

eyflic'-'al^wl&tS ^It^l'S t^£'Z'^^^^^' conditions, such as accommodation, muscular action of the 
eye, eic, as well as the nature of the employment of the injured, may be taken into consideration. 



2108 



REPORT OF THE COMMISSIONER OF LABOR. 



TABLE FOR DETERMINATION OF DEGREE OF DISABILITY DUE TO INJURIES CAUSED 

BY INDUSTRIAL ACCIDENTS— Continued. 



Disa- 
bility 
num- 
ber. 



21 



22 



23 



24 



Nature of disability. 



VI. Chest— Concluded. 

Decrease of respiratory action of the lungs or of the respiratory surface, because of partial 
cohapse, adhesions, etc.: 

Severe 

Moderate 

Slight '*.''.''.".*..".".'.'.*.".".'.'.'..'.' 

Chronic affections of the pulmonary tissues: 

Severe 

Moderate 

Slight !!!!]"!!!.] 

Organic diseases of heart, its cavities and lining "(chronic myocarditis,' aneuriVm^^^ 



25 
26 
27 



28 
29 
30 
31 
32 
33 



3i 
35 

30 



37 
38 
90 

40 
41 
42 
43 
44 



VII. Abdomek. 

Chronic diseases of abdominal organs, resulting in derangement of their functions 
and faihng of nutrition (stricture of esophagus, of stomach, of intestines, intestinal 
fistula, chronic peritonitis, hepatitis, etc.): 

Grave 

Moderate 

Slight »...."1!! !!!!!!!!!!! 

Injuries of abdominal wall, interfering witii mechanical work 

Herma (abdominal, inguinal, femoral) (a) 

Prolapse of rectum or uterus \V..\.V\ 

VIII. Gemtourinary Organs. 

Chronic nephritis 

Derangement of urination resulting from injuries in the regioii of genito-iirinarv orcans 
Fistula of the urethra or bladder, interfering with walking and raising of weights 

Chronic hydrocele ,__ 

Loss of male organ at age under 50 !.!!.!.!!!!! 

Loss of both testicles at an early age i ! ! ! ! i . ! ! ! . ! i 1 ! ! ! i 1 



IX. Back. 

Injuries of the spinal column, resulting in objective and lasting signs of functional dis~ 

turbance of the spinal cord (paralyzed extremities, incontinence of urine or feces) 
Lossof mobility of the spinal column: 

Severe 

Moderate 

Slight :!!!!!!"!!!!!!!!!!!!! 

Ruptures and lacerations of the dorsal muscles: 

Severe 

Moderate 

Slight \'.\"\\"'.\" ][""]'.'.'.'. ...[[[[[ 



45 
46 
47 
48 



X. Upper Extremities. 

„, A. FINGERS. 

a. Thumb: 

JjOss of terminal phalanx /Right. . 

(Left. . . . 

Loss of terminal and one-half of the first phalanx jRight. 

Loss of both phalanxes J Right . . 

\Left.... 

Loss of both phalanxes and the metacarpal bone i^%^t. 

Immobility (anchylosis) of the first joint /Right . . 

(.Left 

Immobility of second joint /Right . . 

\Left.... 

Immobility of both articulations /Right. 



\Left 



Contraction of thumb /Right.. 

T J \Left 

Index: ^ 

Loss of second and third phalanxes fRight. . 



Per cent 
of disa- 
bility. 



GO 
30 
15 

100 
50 
10 

100 



80 
40 
10 
25 
25 
25 



60 

15 
50 
15 
30 
60 



100 

60 
25 
10 

40 

SO 

6 



is 



»5 

10 
35 
15 

10 

10 

5 

15 



Loss of all three phalanxes, with or without the metacarpal hone if Tt*^^' 

Immobility (anchylosis) of the first joint I?^f ^'' 

Immobility of the first and middle finger joints /Right. . 

a Hernia entitles the injured person to compensation only in those ca.s«\s where they are brought about 
Dv an accident (such as blow, fall, or unusual exercise of strength) which suddenly causes all objective sisms 
of a henna, with phenomena of strangulation, which necessitate medical assistance. 



15 

15 

u 

u 

15 
10 
16 
IS 



I 



CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 



2109 



TABLE FOR DETERMINATION OF DEGREE OF DISABILITY DUE TO INJURIES CAUSED 

BY INDUSTRIAL ACCIDENTS— Continued. 



Disa- 
bility 
num- 
ber. 



49 
50 
51 
52 
53 

64" 
55 

56 
57 
58 
59 
60 
61 

62 
63 

64 
65 

66 
67 
68 
69 
70 
71 
72 
73 
74 
75 
76 
77 
78 
79 
80 
81 
82 
83 
84 



Nature of disability. 



X. Upper Extremities— Continued. 

A. FINGERS— cjntittued. 
Index— Concluded . 

Immobility of the first and last finger joints JLeft**'" 

Immobility of the middle finger joint •( ?'ft^^ ' ' 

Immobility of the middle and last finger joints IPft^*" " 

Immobility of all three joints { f *ft*' " " 

Curvature of the finger If ^ft**'" * 

Middle and ring fingers: 
Loss of one finger with the metacarpal bone -i?^*^'" ' 

Loss of the second and third phalanxes "(f *ft^*' " 

Immobility of all the three joints, or the first and second joints Il' ft^^ 

Immobility of first joint {f'ft*^ " 

Immobility of the middle joint /Right. . 

Immobility of the first and third joints {feft*^'' ' 

Immobility of the middle and third joints {f ^f/^*^" 

Curvature of the finger If *ft*^' ' 

Little finger: 
Immobility of all three joints If ^^'' ' 

Curvature of finger . /Right.. 

\Left. 

Injuries to several fingers of one hand: 

Loss of all fingers /Right.. 

Stiffness of all fingers /Right. . 

Curvature of all fingers <Right.. 

\Left 

Loss of thumb and index . (Right.. 

\Iieft 

Loss of thumb and middle ^?^?^^- 

\Left 

Loss of thumb and ring If ^f^^' " 

Loss of thumb and little ^?^f**^- 

\Left.... 

Loss of thumb, index, and middle -f?*?^^-- 

\Left 

Loss of thumb, hidex, and ring iT^^^*^ - • 

I Left 

Loss of thumb, index, and little . /?^?^^ - • 

\Left — 

Loss of thumb, index, middle, and ring If *f^* " ' 

Loss of thumb, index, middle, and little /Right.. 

iLeft 

Lossof thumb, middle, and ring ^?^^^-- 

Loss of thumb, middle, and little -f?'?*^* • - 

(Left — 

Loss ofthumb, ring, and little.... /Right.. 

(Left 

Loss of index and middle /Right.. 

ll^ft-... 

Loss of index and ring /Right. . 

\Left.... 

Loss of index and little.. /Right. . 

\Left.... 

Lossof index, middle, and ring (Right.. 

ILeft 

Loss of index, middle, and little.. jRieht.. 

ILeft-... 

Loss of middle and ring /Right.. 



Per cent 
of disa- 
bility. 



15 
10 
IS 

5 
15 
10 

u 
m 

10 

to 

5 

s 


10 
5 
5 

5 

5 

5 

10 

s 

5 

5 


7S 

65 
55 
00 
50 
50 
40 
49 
35 
*) 
33 
35 
25 
00 
SO 
60 
50 
50 
40 
70 
60 
TO 
60 
50 
40 
45 
35 
45 
35 
35 
25 
35 
25 
25 
20 
50 
40 
45 
35 
25 
20 



2110 



REPORT OF THE COMMISSIONER OF LABOR. 



TABLE FOR DETERMINATION OF DEGREE OF DISABILITY DUE TO INJURIES CAUSED 

BY INDUSTRIAL ACCIDENTS— Ckintlnued. 



Disa- 
bility 
num- 
ber. 



85 
80 
87 
88 
89 

90 
91 
92 
93 
94 
95 

90 
97 
98 

99 
100 
101 
102 
103 
104 
105 



100 

107 

lOS 

109 

110 
111 

112 
113 



114 

115 
116 



Nature of disability. 



X. LTppEB Extremities— Concluded. 

A. FINGERS — concluded. 

e. Injuries to several fingers of one hand— Concluded. 

Loss of middle and little St «ri " 



■)Lert. 



Loss of middle, ring, and little iLeft '.' 

Loss of ring and little iLeft 



Loss of index, middle, ring, and little \Left 

Loss of thumb, middle, ring, and little iLeft 

/. Injuries to several fingers of both hands: 

Loss of all fingers of both hands, or of 9 fingers 

Loss of l>oth index fingers 

Loss of thumb and index of one hand and index of the other hand 

Loss of thumb, index, and ring or little finger of one hand and index of the other 

Loss of all fingers of one hand except index, and the thumb of the other 

Loss of both thumbs and indexes (o) 



B. ■WTJST, 

Loss of wrist \Lef( 

Stiff wrist joint (Kfi'!'.; 

Loose wrist joint {Left 

C. FOREARM. 

Loss of forearm at elbow joint { Loft 



Stiff elbow joint at full extension or full flexion {Left'^;. 

Stiff elbow joint at right-angle flexion {Left 

Loose elbow joint {Kft^!.; 

Lnni ted action of wrist {KfJ**;; 

Limited motion in elbow and wrist joint {ivpft 

Stiffness of elbow and wrist joint {Left'!^ 

D. SHOULDER AND ABM. 

Loss of arm at the shoulder joint or between the shoulder au^l elbow joint {ljR 

Stiffness of shoulder joint {Eeft^!!! 

Loose shoulder joint {L«'ft 

Limited motion in shoulder joint {Lfft^ * 

Inability to raise the arm more than into a horizontal position ■! -^^^^ ' • • 

Wrong union of fracture of shoulder blade or collar bone, if resulting in limiting|Right. . 
the motion of arm \L«'ft — 

Habitual dislocation of shoulder {Left**!! 



E. HANDS. 



Loss of both hands or wrists. 



XI. Lower Extremities. 



A. TOES. 



Loss of big toe 

Loss of all toes of one foot 

Loss of heads of metatarsal bones. 



Per cent 
of disa- 
bility. 



20 
15 
35 
20 
20 
10 
70 
55 
65 
50 

100 
50 
65 
70 
80 
85 



75 
65 
30 
25 
40 
30 

75 
65 
SO 
40 
35 
25 
60 
50 
25 
15 
30 
20 
60 
60 



75 
60 
60 
50 
65 
£0 
30 
20 
40 
30 
20 
10 
20 
10 



100 



10 
25 
50 



a In cases of loss of several fingers, or phalanxes of several fingers, the loss of the grasping surface of the 
four fingers put togethor must be taken into consideration. A loss of about one-half of that surface Ls equal 
to a loss of one-third (33J per cent) of earning capacity. The valuation of the injuries of the hand and 
wrist must be much higher for workmen employed at trades which demand fine hand work.^ 



^- 






CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2111 

TABLE FOR DETERMINATION OF DEGREE OF DISABILITY DUE TO INJURIES CAUSED 

BY INDUSTRIAL ACCIDENTS— Concluded. 



Disa- 
bility 
num- 
ber. 



117 
118 
119 
120 
121 



122 
123 
124 
125 
120 
127 
128 
129 



130 
131 
132 
133 

134 
135 



136 



Nature of disal.>Uity. 



Per cent 
of disa- 
bility. 



-|- 



XI. Lower Extremities— Concluded. 



B. FOOT. 



Loas of foot at the ankle joint or below it 

Fractures of "os calcis" or tarsal bones 

Complete immobility of ankle joint of one foot, tho foot being plai-ed at right angle to leg. . 

Complete immobility of ankle joint, the foot being placed in oblique angle to leg 

Loose ankle joint 

C. LEG. 

Loss of one leg 

Complete immoblity of the knee joint at extension 

Complete immobility of knee joint at slight flexion, under obtuse angle 

Complete immobiUty of knee joint at strong flexion in an acute angle, or over extended . . 

Loose knee joint 

Stretched ligaments of knee joint (weakened joint ) 

Fracture of patella with disarrangement of the apparatus for extension 

Irregular union of a fracture of leg with shortening of over 5 centimeters [1.97 inches] and 
Umited motion 

D. THIGH. 

Loss of thigh 

Complete immobility in hip joint in extension of leg 

Complete immobility in hip joint in flexion of leg 

Irregular union of fracture of thigh with shortening of leg of over 5 centimeters [1.97 

inches] and limitation of motion 

Failure of fracture of hip to unite (false joint) 

Loss of both legs or feet 

XII. Upper and Lower Extremities. 

Loss of one leg or foot, and one arm or hand 



00 
40 
25 
40 



65 
40 
25 
SO 
60 
25 
SO 

45 



75 

m 

60 

50 

65 

100 



100 



Note 1. — Full paralysis of extremity or a pari of an extremity is assimilated to its loss; the same is true 
of immovable joints, cicatricial contraction, chronic ulceration, insufficient covering of bones after amputa- 
tion, loss of tendons, etc., when leading to complete impossibility to u.se the injured extremity at work. 

Note 2. — In injuries of lower extremities attention must be paid as to whether working is possible with 
cane, crutches, etc., and in all injuries as to how far the disabiUty caused may be rectified by means of 
apparatus and appliances. 

Note 3.— In multiple injuries, resulting from one accident, the estimate of disability must not be matie 
by means of a simple addition of the numbers corresponding to individual injuries according to this scale, 
but with consideration for the circumstances of each case, i. e. , for the resulting loss or reduction of capacity 
to earn a livelihood from the combined effect of all the injuries together, in connection with the general 
state of health and nature of employment. In no case must the estimate exceed 100 per cent. 

Note 4.— Traumatic and other bodily injuries not mentioned in the scale must be estimated in accord- 
ance with these general considerations. 

METHODS OF COMPUTING EARNINGS. 

As the amount of the pension depends upon the annual earnings of 
the injured workman, the method of determination of these earnings 
is of importance to the efficacy of the law. The following method 
is prescribed by the act: The actual earnings of the person injured, 
as determined by the books of the concern, for the year preceding the 
day of the accident (or in cases when the workman has been em- 
ployed less than a year, for all the time of his employment), is divided 
by the number of days of actual employment, and the average daily 
earnings thus obtained are multiplied by 260 (considered by this law 
the average number of working days in a Russian factory). In the 
case of establishments which normally are not active the whole year, 
the average daily earnings are multiplied by the normal number of 



2112 



REPORT OF THE COMMISSIONER OF LABOR. 



4 



CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 



2113 



working days for such establishments, but to the product must be 
added the usual wages of a common unskilled laborer for the differ- 
ence between 260 and the normal number of working days in tliat es- 
tablishment. Where lodging constituted ])art of the earnings of the 
workman, the sum of earnings as computed above must be increased 
by 20 per cent, and in case of table board its actual cost must be 
added. In no case must the earnings so computed be less tlian the 
average wages for unskilled labor for 260 days. The same minimum 
must be taken as a basis where the mjured workman was not receiv- 
ing any wages. On the other hand, if it can be proven that the actual 
ordinary or normal earnings of the injured were greater than the sum 
computed according to the above rules, these must be taken as a 
basis. Thus the minimum wage is not definitely established, but is 
expressed as the average wages for unskilled labor. These averages 
are determined by the local provincial administrative offices in charge 
of manufactures or mining, either for the entire province or, when it 
is thought necessary, for separate districts of the province, ev6ry 
three years, and separately for either sex in the three age groups: 
Children (12 to 15 years), youths (15 to 17 years), and aduhs (over 17 
years). 

If the injured is under 17 years of age, his pension is computed at 
the basis of the wages of a youth, but recomputed according to the 
wages of an adult when he reaches 17 years of age; when the injured 
is under 15 years of age, such recomputation must take ))lace twice, 
when he reaches 15 and again when he reaches 17 jenrs of age. 

SEITLEMENT OF CLAIMS. 

In excluding cases of accidents due to gross negligence from the 
benefits of the law, the question of the cause of accident creates oppor- 
tunity for disagreements. Even if the justice of the claim is undis- 
puted, a great many factors evidently influence the amounts of the 
compensation. The actual amounts are not fixed by any administra- 
tive process; the law establishes a claim, for the proper determination 
of which all tliese provisions must be taken into consideration, but 
the claim is settled either by voluntary agreement or by judicial deci- 
sion. It is the intention of the law to encourage the former, but in 
order to safeguard the interests of the workmen, such agreements 
must be approved by the proper authorities familiar with the law. 

The following procedure is established with this object in view: 
Agreements between the injured pei-son or members of his family in 
regard to the amount of compensation must be in writing, signed by 
both parties, and certified by the factory inspector. This certifica- 
cation is in the nature of approval, and the factory or minhig ins[)ector 
must refuse his certification when the agreement, in his opinion, is 
obviously and substantially contrary to the requirements of the law. 



^t- 



4 



f* 



The original copy of the agreement remains with the factoiy or mine 
inspector, while certified copies are given to each party. An agree- 
ment thus certified is binding similarly to a private settlement before 
a justice of the peace 

Further, the factory or mine inspector must make efforts to facili- 
tate such agreements. If a voluntary agreement has not been accom- 
plished, either party may petition the factory or mine inspector for his 
opinion as to their rights or duties in the case under the law. In such 
cases the factory or mine inspector may demand additional evidence 
and ask for a medical examination, and he may suggest the proper 
conditions for a settlement; but if, notwithstanding his efforts, the two 
parties can not be brought together, or if the inspector declines to cer- 
tify to the agreement because an unjust one, he must make a written 
statement (''act") to that effect, stating the date of the petition, the 
time, place, and circumstances of the accident, the nature of the 
bodily injury, the degree of disability, or, in fatal cases, the cause of 
death, the demands and offer of the respective parties, and, finally, 
state his opinion as to the merits of the case, i. e., the rights of the 
injured or his relatives to compensation, and its amount. Both par- 
ties receive certified copies of this ''act." 

Cases in which voluntary settlements have failed may be brought 
to trial before a justice of the peace or the district magistrate {ZernsJci 
nachalnik). 

When the injured is a minor, and not living with his parents or 
guardians, the local court may appoint a guardian. The factory in- 
spectors may recommend persons for such appointment. Suits may 
be entered by the injured within two years after the day of the acci- 
dent, and by his heirs within two yeai*s after the day of the deatli of 
the injured, as against the 10-year limit in general Russian law, but 
in computing this time limit, the time elapsing between entermg 
the case with the factory inspector or district engineer and the day of 
furnishing the injured party a copy of the factory inspector's "act" 
is omitted. If both parties have come to a voluntary agreement, 
either oral or written, but not approved in accordance with the rules 
above, the injured workman or his family do not lose their right of 
demanding compensation in accordance with the law, even if moi^e 
than two years have elapsed, and all the time during which this volun- 
tary agreement has been effective is left out of consideration. This 
protects the injured or his family from any settlement which the pro- 
prietor may agree upon with the view of living up to it only v. ithin 
the two-year limit. 

In actions instituted, claims are entered against the proprietor of 
the establishment, either at the place of the accident, or at the place 
of residence of the proprietor or at the main office of the establish- 
ment. Such action may be instituted either after carrying the case 



2114 



REPORT OF THE COMMISSIONER OF LABOR. 



through the office of the factory inspector, or without bringing it 
to the attention of this officer, but the law discourages the latter 
procedure by depriving the claimant in such cases of his right to 
receive court expenses. The same rule holds good if the court's 
judgment is for a compensation no greater than that ofl'ered by the 
defendant during the preliminary negotiations. But on the other 
hand the law endeavors to facilitate just claims in many ways; they 
are free from court fees, must be conducted under a simjjlified mode 
of procedure, the amount of attorney's fees is strictly regulated, and 
all contracts for excessive fees are not enforceable. Appeals against 
the decisions of the judges of the first instance (justices of the peace) 
may be had to circuit courts and higher courts of appeal; in such 
appealed cases the lower court, upon request of the plaintiff, may 
order '^a prehminary award," with or without bonds. .Judgments 
obtained from the courts under this law have, a preferred claim against 
the property of the defendant. Private settlements of the cases 
brought before the court are not binding ucdess they havt^ been sanc- 
tioned by the court. Private arbitration of cases under this law is 
prohibited, and decisions of courts of arbitration are not enforceable. 

REVISION OF COMPENSATION. 

Further reconsideration of the case is permitted within three years 
after the compensation has been granted or refused, if after a medical 
examination, ordered upon demand of either party, changes in the 
condition of the injured are found to have taken place. Lump-sum 
settlements, however, can not be changed and are not subject to 
revision. 

REGULATIONS AS TO METHODS OF PAYMENT. 

The allowances and pensions are paid periodically, ns follows: 
Payment of allowances for temporary disabihty must be made at the 
same intervals as the payment of w^ages. The time of payment of 
pensions for permanent disability or death may be arranged for by 
both parties, but in absence of such private arrangemejit the pay- 
ments must be made monthly in advance. At the request of the 
persons receiving compensation, payment must be forwarded to 
their place of residence at their expense. 

On the other hand the pensioners must twice a year (in January 
and July) present to the proprietor of the establishment or to his 
representative certificates to the effect that they are alive, and in 
case of widows, that they have not remamed, such certificates to be 
filled out by police authorities, and unless such certificates are pre- 
sented the employer may withhold the payments. Such certificates 
must be given by the police without fee, and are free from stamp 
taxes. Unless there has been cause for d<day, the employer must 



«T^ 



I 



CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2115 

pay a fine for delaying the payments, equal to 1 per cent of the sum 
retained for each month, and when the delay has extended over more 
than 6 months, he may be forced to guarantee the payments in the 
future according to the same rules which are laid down for cases of 
liquidation of the enterprise. 

SECURITY OF PAYMENTS. 

Since the Russian law does not introduce any compulsory system 
of insurance and throws the burden of compensation upon the indi- 
vidual employer, the question of guaranteeing the payments is of 
great importance. In case of voluntary liquidation, the proprietor 
must either insure the beneficiaries of the pensions, to the amount of 
paynients due, in one of the recognized insurance companies, or must 
turn into one of the state credit institutions a sum sufficient to meet 
such payments. Comprehensive tables giving the capitalized value 
of pensions due to the injured workmen, whether adult, youth, or 
child, to the widow, and to relatives in ascending and descending 
line, for use in securing such pensions w ith insurance companies, were 
published by the Ministry of Interior on June 25 (July 8), 1905. The 
factory (or mine) inspector must be notified of the liquidation, and 
also of the measures taken to secure the payment of these obligations. 
In case of death of the proprietor his obligations under this law are 
transmitted to his heirs. In case of voluntary transfer of ownership, 
these obligations may be transferred to the new owner with his writ- 
ten consent, otherwise the original proprietor must guarantee the 
payments in the future, according to the rules laid down for cases 
of voluntar}^ liquidation. 

In cases of bankruptcy, enforced liquidation, or public sale of the 
establishment, the receivers or other persons in charge must ascer- 
tain from the proprietor and from the factory or mine inspector the 
total obligations of the establishment under this act. A computa- 
tion must be made of the total sum required to insure the payment 
of these obligations and such sum becomes a preferred claim upon the 
amount received from the enforced sale. After the liquidation has 
been accomplished, the factory or mine inspector must be informed 
as to the amount available for this purpose. He must indicate what 
disposition shall be made of these funds, and in what insurance or 
banking institutions they may be deposited. 

ACCIDENT REPORTS AND RECORDS. 

The following methods of procedure are prescribed m connection 
with each accident. When an accident occurs, the proprietor or 
manager of the establishment must immediately communicate the 
facts to the local police, as weU as to the factory inspector or to the 



mimm 



2116 



REPORT OF THE COMMISSIONER OF LABOR. 



i 



1 1 i 



mining inspector (''district engineer"). Immediately after receiving 
such notice the local police must send an officer to prepare a written 
report in presence of the proprietor or the manager of the establish- 
ment, the injured person, if he is able to be present, a physician, the 
eyewitnesses of the accident, and an expert on the nature of the work, 
or as many of the persons designated as it is possible to summon. 
This statement must contain information as to the place and time of 
the accident, the names of the injm^ed persons, and their occupation, 
the names and addresses of the eyewitnesses, the name of the pro- 
prietor of the establishment, a description of the circumstances of the 
accident, as obtained from the statement of the eyewitnesses as well 
as the results of a personal examination of the place, the nature of the 
injuries, and the statement of the physician, if one was present, and 
it is signed by all persons present. 

If the statement is made without a plnsician, one must be invited 
by the proprietor within 4 days after the accident, or in case of death, 
immediately. The physician makes a medical examination, and 
makes a statement either of the death, and its causation by the acci- 
dent, or of the nature and extent of the bodily injury with a conclu- 
sion in regard to the probable degree of disability. Two additional 
copies are made both of the police '' statement" and the medical cer- 
tificate, and one of each is given to the proprietor or manager and to 
the injured person or some member of his family. 

A record is kept in each industrial establishment of all injmiea, 
with statements as to compensations paid, and all documents ])ertain- 
ing to the subject. All further changes in i\i6 conditions of the injured, 
such as recovery from the injury, or the propriety of rliscontinuing 
the medical treatment, the complete recovery from disability, the 
permanency of disability, and its degree, must be certified by medical 
certificate. The certificate of any regular practitioner is acceptable, 
and if his decision be unsatisfactory, the police, city oi' distiict sur- 
geon may be called upon by either party to grant these certificates. 
A complete list of all accidents, with tiie statements and medical 
certificates attached, must be kept at each establishment and presented 
to tlie factory or mining inspector on demand. Failure to keep the 
necessary records, to give the required notice to the police, or to call 
in a physician subjects the proprietor or manager to a fine of from 25 
to 100 rubles ($12.87 to $51.50). 

FUNCTIONS OF THE FACTORY AND MINE INSPECIOUS. 

As shown above, the administration of the law is placed u])on the 
factory and mine inspectors. This includes certification and approval 
of the voluntary agreements, explanation and interpretation of the 
law, and the rights and duties of all parties under it, inspection of 
the accident lists, determination of average wages of unskilled labor, 



CHAPTER IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2117 

nommations of guardians for minoi-s in cases to be brou^^ht to fial 
certam supervision of the process of voluntary^ and enforced liquida- 
tions etc As yet the system of factory inspection has been intro- 
duced only m European Russia and four of the Caucasian provinces- 
no factoiy mspectors are provided for the remaining provinces of 
Caucasus and throughout Siberia and middle Asia. In these prov 
mces the funcdons of the factoiy inspectors are placed upon other ad- 
mmistrative officers, known as provincial mechanics, but in view of the 
insufficiency of the number of these officers (only one to a pro^once) 
local judges are authorized to certify and approve voluntary settle- 
ments; m addition, the injured employees or their heii^ are per- 
mitted to bnng their claims into court without any prejudice to their 
-r^nfrSV P'^.rr^/^ *^ resolution of the Imperial Council, the 
Central Council of Manufactures and Mines" attached to the Alin- 
istry of Finance (and since transferred to the Ministry of Commerce 
and Industry) was directed to prepare a set of rules and regulations 
for guidance of the provincial councils of manufacturer and mines 
of the factory or mme inspectors, or the officers acting in their places' 
where no factory or inspection exists, in their duties under this law' 
buch regulations were prepared and promulgate by the minister of 
finance on December 13 (26), 1903. 

Complete fists of industrial and mining establishments in each dis- 

oTmTZfl" '''^^^'^}'^ the factory or mine inspectors and kept 
on fde by the provmcial councils of manufactures and mining All 
establishments subject to this law must be listed whether or not these 

ZuST.Z r'^'"^' ^"^^^' '' ^^^^^^ ^^ ^-^ inspection 
Doubtfu estabhshments must be entered in the lists, and the ques- 
tion of he app hcation of the compensation act must be settled bv 
the local council or referred to the central council in St. Petersburg 
to which the propnetor of the establishment, who must be notified 
of Its inclusion m the lists, has a right of appeal. Wliere there are 
no factory inspectors, other officers are instructed to collect the lists 

It is the inspector's duty to make a personal investigation of everv 
mdustnal accident in his district, which takes place in an estab i! - 
f^rmal^^^^^^^^^ ' the compensation act, without waiting for the 

Sto TbI'in r '^^P^'^.P^-' -<i 1- --t cooperate with the 
pouce to obtam aU possible information. It is his duty to encoura-e 

failed to come to an agreement, a^ evidenced by a proper -act'' of 

iUhlT. Yr'^'T'"'' '^^ " *"^"^^^ *^^^ ^''^ ^tituted, and even 

a rt utft fo^' 'T ^^^ ^'^P^^^^ nevertheless, if both parties ent^r 

fused If n r '''''^'^ agreement, such request must not be re- 

sed. If oral agreements are presented to him by both parties he 




—4 



A 



2118 



REPOET or THE COMMISSIONEK OF LABOR. 



can not declme to put them in writing as a preliminaiy to certifica- 
tion. In the case of a written agreement, acknowledged by a notary 
appearance of the agreeing parties is not necessaiy and the requS 
for certification may come in writing. 

The inspector must dechne to certify settlements by which the 
employer tnes to avoid a direct obligation imposed by the law, or 
the employee signs away one of his undis,,uted rights, but before 
domg so the mspector on his initiative must suggest the changes 
necessary to obtam certification. With the written consent of both 
parties he may certify to some provision of the settlements and except 
others. When requests are made upon the inspector by one party 
for explanation as to his rights, the inspector may ask the other party 
to appear before him, and failure to appear must be considered as a 
retusal to enter into a voluntary agreement. 

The factory inspectors may take the initiative to petition the court 
for appomtment of the guardian for minor claunants. In case of 
pending voluntaiy liquidation, or transfer or public sale of an estab- 
Iislmient, the mspector must remind the proprieto,^, orally or in 
writing, of their obligations under this act, and also inform all the 
beneficianes asfar as possible, of the coming change in ownership. 
They must also inform the official conducting such liquidation or sale, 
of the obligations under this law. As defined by the regulation., 
the duties of the factory and mine inspected are very broad and 
complex. Besides being charged with almost all the details of the 
execution of the law, they are practically made official mediatoi^ and 
conciliators, upon whose work the success of the law largely depends. 

INSTRUCTION TO THE POLICE. 

Rules for the regulation of the police authorities in connection 
with the law were approved by the ministere of interior and of war 
on December 11 (24), 1903. The obligations of the police are mainly 
limited to making an official record of the accident as soon after its 
occurrence as possible and gathering at the place of its occ.rrence 
all the possible information from the eyewitnesses. These regula- 
tions to the factory inspectors and the police were also intended to 
materially improve the statistics of accidents. 

INSURANCE. 

Willie the law estabfishes the individual fiabifity of the employer 
and all proposals to estabhsh a system of com,,ulsorv insurance were 
declared premature, the advantages of insurance were cleariv recoe- 
nized and the mtroduction of a system of <ompulsory insurance 
agamst accidents has only been deferred until a more propitious time 
ihe law tends to encourage insurance not only by permitting it but 
also by providing that the employer may be entirely refieved from 



' 



CHAPTER IX.— workmen's INSURANCE IN RUSSIA. 2119 

all obligation imposed if he insures his employees in an authorized 
msurance company under conditions no less favorablT th«n Ti 
secured by the law. Both private insurance compos and mSu3 
msurance societies are authorized, but both must conform to tl^S 

uary 4, 1904 . These rules are discussed more fully in connection 
with the section on private insurance against accidents "°'^""''°" 

SPECIAL PBOVISION FOE WOEKKEN EMPIOYED BY THE STATE. 

The industrial undertakings of the Russian Central Government 
have durmg the last two centuries been extensive, and ^13 o 

eXilSsiLrt'T ^' '""'^ ^^"^*"^' eUablisWnTs fo 
results of industrial accidents was recognized many years before anv 

steps were taken for a general law to cover privaLLdertri ' 

CIVIL EMPLOYEES OF NAVY-YARDS. 

.J^^ tr^'? employed in the navy-yards and their famifies were 
ratl?hv^h ,' '" ^ P^T^e^l for in case of accidentaHnTuries or 
deadi, by the law o October 8 (20), 1862, wliich remained L Lee 
untd after tiie apphcation of the provisions of the general com 
pensation act of 1903 to this class of state employees Tccordr; 

or pLrrCrTh T^'^"* ^'^^ *'^"'* ^ determine thtS 
lil !i • Tf' ^^^ '*^ ^^ P«^ed 48 years ago and estali- 
Lshed pensions which have remained unchanged The Taw^reserved 

tts Si' nr" •"T*™'--' ioumeymen, aLTpp;: 
fXwing scaL?""' '"°"'^*^ ""' P™-^^ ^ -*=''' -«-ding 'to' the 

ANNUAL PENSIONS GRANTED TO EMPLOYEES OE NAVY-YARDS. BY CLOSES 



Class. 



Annual pension paid to— 



For total loss of sight. 



4. 



thougli not sufflcien? for supTOrt ^ ^ '™' *""« "^^' 

8t some other wMu^Uonl';^. !^.^ . ' »'^<"«>t »mount for support 




se«=i-i~Hss;= 



-40 



p^>r^ 



2118 



REPORT OF THE COMMISSIONER OF LABOR. 



can not decline to put them in writing as a preliminary to certifica- 
tion. In the case of a written agreement, acknowledged by a notary, 
appearance of the agreeing parties is not necessary and the request 
for certification may come in writing. 

The inspector must decline to certify settlements by which the 
employer tries to avoid a direct obligation imposed by the law, or 
the employee signs away one of his undisputed rights, but before 
doing so the inspector on his initiative must suggest the changes 
necessary to obtain certification. With the written consent of both 
parties he may certify to some provision of the settlements and except 
others. When requests are made upon the inspector by one party 
for explanation as to his rights, the inspector jnay ask the other party 
to appear before him, and failure to appear must be considered as a 
refusal to enter into a voluntary agreement. 

The factory inspectors may take the initiative to petition the court 
for appointment of the guardian for minor claimants. In case of 
pending voluntary liquidation, or transfer or pubhc sale of an estab- 
lishment, the inspector must remind the proprietors, orally or in 
writing, of their obligations under this act, and also inform all the 
beneficiaries, as far as possible, of the coming change in ownership. 
They must also inform the ofiicial conducting such liquidation or sale, 
of the obligations under this law. As defined by the regulations, 
the duties of the factory and mine inspectors are very broad and 
complex. Besides being charged with almost all the details of the 
execution of the law, they are practically made official mediators and 
conciliators, upon whose work the success of the law largely depends. 

INSTRUCTION TO THE POLICE. 

Rules for the regulation of the police authorities in connection 
with the law were approved by the ministei-s of interior and of war 
on December 11 (24), 1903. The obligations of the police are mainly 
limited to making an official record of the accident as soon after its 
occurrence as possible and gathering at the place of its occurrence 
all the possible information from the eyewitnesses. These regula- 
tions to the factory inspectors and the police were also intended to 
materially improve the statistics of accidents. 



INSURANCE. 

Wliile the law establishes the individual liability of the employer, 
and all proposals to establish a system of compulsory insurance were 
declared premature, the advantages of insurance were clearly recog- 
nized and the introduction of a system of compulsory insurance 
against accidents has only been deferred until a more propitious time. 
The law tends to encourage insurance not only by permitting it but 
also by providing that the employer may be entirely reHeved from 



CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2119 



all obligation imposed if he insures his employees in an authorized 
insurance company under conditions no less favorable than those 
secured by the law. Both private insurance companies and mutual 
insurance societies are authorized, but both must conform to the rules 
as laid down by the minister of interior on December 22, 1903 (Jan- 
uary 4, 1904). These rules are discussed more fully in connection 
with the section on private insurance against accidents. 

SPECIAL PROVISION FOR WORKMEN EMPLOYED BY THE STATE. 

The industrial undertakings of the Russian Central Government 
have during the last two centuries been extensive, and the need of 
compensating the employees of these industrial establishments for 
results of mdustrial accidents was recognized many years before any 
steps were taken for a general law to cover private undertakings. 

CIVIL EMPLOYEES OF NAVY- YARDS. 

The workmen employed in the navy-yards and their families were 
among the first to be provided for in case of accidental injuries or 
death, by the law of October 8 (20), 1862, which remained in force 
until after the apphcation of the provisions of the general com- 
pensation act of 1903 to this class of state employees. According 
to the law of 1862, all cases of disabihty or death caused by acci- 
dents were compensated without any effort to determine the fault 
or place the blame. The law was passed 48 years ago, and estab- 
fished pensions which have remained unchanged. The law preserved 
the distinction between masterworkmen, journeymen, and appren- 
tices, with different amounts of pensions to each, according to the 
following scale: 

ANNUAL PENSIONS GRANTED TO EMPLOYEES OF NAVY-YARDS, BY CLASSES. 

[Source: Otvietstvennost predpriminatelei za uvlechla i smert rabochikh, V. P. Litwinov-FalinskiL 

1900.] 



A-nnual pension paid to — 



Class. 



1. For total loss of sight 

2. Loss of life, or of two extremities, or such injury as will necessitate con- 

stant care of injured the rest of his life 

3. Loss of one extremity or such Injury as will cause total disability to 

earn a living but does not necessitate care of injured 

4. Injury resulting in disability to continue employment in the navy- 

yards, but not altogether destroying abUity to earn some wages, 

though not sufficient for support '. 

5 Injury re-sulting in disability to continue in employment in navy-yard, 
but leaving the victim able to earn a sufficient amount for 8upi)ort 
at some other occupation 




15.45 



10.30 



Pensions of the fourth and fifth groups were either permanent or 
temporary, depending upon the duration of disability resulting from 
injury. When death resulted from the injury the widow received 



67725°— VOL 2—11- 



-40 



2120 



REPOBT OF THE COMMISSION EB OF LABOB. 






one-half of the full pension, as indicated above, and each of the chil- 
dren one-sixth, so that the full pension was granted to tlie family 
only where there were at least tliree children. Wlien the children 
remained orphans at the death of the injured workman, each child 
was entitled to an equal share of the pension, but not more than one- 
fourth each, so that the full pension was granted only when four 
orphans remained. The widow was entitled to the pension until 
death or remarriage, provided she led a sober and moral life, or until 
she entered a government asylum. Male rhildren received their 
pension until 14 years of age and female children until 15 years of 
age; but when crippled or suffering from incurable diseases, and 
therefore unable to earn a hving, the pension was continued for life. 
The dependents were entitled to a pension, not only when death 
resulted from the injury, but in all cases of death of a workman 
receiving a pension. The procedure was entirely through tlie officers 
administering the navy-yards. On May 17 (:^0), 1904, the provisions 
of the law of June 2 (15), 1903, with some modification, were substi- 
tuted for the law of October 8 (20), 1862, while on March 6 (19), 
1906, a special act was passed. 

STATE MINES AND METALLURGICAL ESTABLISHMENTS. 

Labor in state mines and metallurgical estabhshments before the 
emancipation of serfs in 1861 was obhgatory for the peasants of cer- 
tain mining districts. Since 1857 the obUgation of the State to care 
for the injured and the invaUd was recognized, though the compen- 
sation was limited to 2 poods (72.2 pounds) of flour for an adult and 
1 pood (36.1 pounds) of flour for a minor monthly, and money pen- 
sions varying from 1.87 to 72 rubles (S0.96 to $37.08) per annum for 
the injured workman, from 1.72 to 21 rubles ($0.89 to $10.82) per 
annum to the widow, and 1.72 to 10 rubles ($0.89 to $5.15) per annum 
to each daughter. By the law of March 8 (20), 1861, the relations 
between the state mines and metallurgical estabhshments and the 
peasant population of the mining districts was regulated anew, and 
the law provided for mmers' mutual benefit societies for the care of 
the sick, aged, invahds, widows, and orphans. An amendment to 
this law stated that in case of death or disability due to an industrial 
accident, pensions and allowances should be paid from the treasury 
of the establislmients. This was interpreted to mean that the old 
provisions of the law of 1857 were to be applied. 

A suit instituted in 1894 by an injured workman led to a decision 
that the law of 1857 was inapplicable, and that the injured workman 
had a right to recover under the provisions of the general laws. A 
plan of a special law providing for such compensation of the employees 
of the state mines and metallurgical establishments was being i)re- 
pared in the Ministry of Agriculture and State Domains, embodying 



/ 






CHAPTER IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2121 

the modern principles of such compensation, and this plan was 
finally adopted with certain modifications on May 15 (28), 1901. 

This act preceded by more than two years the general compensation 
act of 1903, and for some time in the history of the deliberations 
leading up to that act, served as a model. The law is still in force 
and IS much broader than the act of 1903 in many points, so that 
the employees of the government mines and metallurgical establish- 
ments are the best protected against the results of industrial accidents. 
One of the most hnportant points of distinction is found in the 
mclusion of disability from trade diseases, for which the same pen- 
sions are paid as for injuries through accidents. 

Another distinction of unportance is that only such injuries and 
occupational diseases are excluded from the benefits of the law as 
have been intentionally brought about by the victim; so that negh- 
gence, even if classified as gross, does not deprive the injured person 
of the compensation. In case of a fatal result the widow and orphans 
do not lose the right to compensation, even if the fatal accident or 
disease had been brought about intentionally. 

The general level of compensation for the permanently disabled 
employee, the widow or dependent widower, children or relations 
under ascending fines is the same as in the general law of 1903, i. e., 
two-thh-ds of the pension for total disability, and a corresponding 
amount, namely, two-thu-ds of the difference between the old and 
the new rate of wages, in case of partial, though permanent, disability 
which permits his reemployment by the state mines at a lower rate of 
wages. Thus the degree of disabifity is judged (in distinction to the 
methods under the general law) primarily with reference to his 
employment m the same service and not with regard to his general 
ability to work. The difi"erence is one of decided advantage to the 
employee of the state mines. i 

Only when the injured workman sufl-ering from such partial disa- 
bifity dechnes an offer of employment must his pension be computed 
a^-cordmg to the degree of disabifity, but in no case must it then 
exceed one-half of the pension for total disabifity; that is, 33 J per 
cent of the average annual earnings. 

The a^t of May 15 (28), 1901, does not concern itself with tJie 
numerous cases of transitory disabifity from minor accidents or 
ailments, because the fraternal organizations of the miners take care 
of that part of the problem, but in the provisions for reexamination 
and revision of the compensation award during the first two years 
after the accident and for the discontinuance of the pension in case 
of reestablished abifity to work, account is taken of briefer periods 
of disability. In case of the accident resulting fatally, the pension 
of the widow or the dependent \vidower amounts to one-half of the 
pension for permanent disabifity, the children under 16 years of age 



2122 



REPORT OF THE COMMISSIONER OF LABOR. 



I 



receive one-sixth of the full i)ension each, but not more than one-half 
of the full pension altogether, the pensions of orphans being dou])le 
that amount. The pensions of the children run until the completion 
of the sixteenth year, but when permanently disabled from earning a 
living because of an incurable disease tfley may receive the pension 
for life. The pension to the injured is discontinued at his reemploy- 
ment at the old wage, at his reception in a state hospital, at his 
death, at his entrance into a monastery, or at the cure of the disease. 
The pension of the widow, widower, or daughters stops at marriage. 
The pensions are not affected by any other benefits which the injured 
or his heirs may be receiving either from a mutual benefit fund or from 
the treasury because of any special law or grant. 

The method of computation of wages to determine the amount of 
pension is also different. It is based upon tht^ average annual earn- 
ings for three years preceding the accident, of the injured employee 
himself, or an employee of tlie same group if tlie injured person had 
not been employed this length of time. 

The application of the law is very much simplified, being left 
almost entirely to the administration of the state mines and metal- 
lurgical establishments, the final appeal being to the Ministry of 
Agriculture and State Domains (now the Ministry of State Domains). 
The medical questions are left to the discretion of the official physi- 
cian of the mining establishment. 

LEGISLATIVE ACTS, 1904 TO 1906. 

The majority of government employees are protected through 
an extension of the principles of the compensation act by separate 
enactments during the years 1904 to 1906, in accordance with the 
demand contained in the original law of 1903. Considerable clianges 
were made in some of the features of the law as appHed to government 
employees. The Ministry of War was first with a plan for the civil 
employees of the arsenals and other works of the artillery depart- 
ment. With the compensation act of 1903 as a basis, a special act 
was elaborated and approved on June 9 (22), 1904. All further 
enactments in regard to other classes of government employees refer 
to this aict of June 9 (22), 1904, and extend its provisions, and not 
those of the law of June 2 (15), 1903. 

On June 6 (19), 1905, a law was accepted covering employees of 
manufacturing, mining, and metallurgical establishments owned by 
the Crown and the appanages (personal property of the Emperor 
and of the members of the imperial family); on December 19, 1905 
(January 1, 1906), the wage- workers and civil employees of the 
state printing office; on March 6 (19), 1906, the corresponding classes 
of employees of the senate printing office and the employees of the 
navy department; and on April 19 (May 2), 1906, employees of the 






CHAPTER IX.— workmen's INSURANCE IN RUSSIA. 2123 

government establishments connected ^ith the department of com- 
merical ports. Certain additional decrees were pubHshed in con- 
nection with these laws at various dates: 

(1) Instructions referring to the application of the law; for the war 
department on April 29 (May 12), 1905; for the employees of the 
Crown on April 21 (May 4), 1906; for the employees of the navy 
department on December 28, 1906 (January 10, 1907). 

(2) Rules to determine the degree of disabihty for the war depart- 
ment on April 29 (May 12), 1905; for the navy department on Decem- 
ber 28, 1906 (January 10, 1907); these are identical with those issued 
in connection with the law of June 2 (15), 1903; the same rules are 
made appUcable to the employees of all other establishments covered 
by these laws. 

(3) Rules for medical examination of new appointees, with lists 
of diseases completely or conditionally disqualif3dng appHcants for 
appointment: In the war department, April 29 (May 12), 1905; for 
the establishments of the Crown, December 16 (29), 1905, (practically 
identical with those of the war department) ; for the senate prmting 
office, June 20 (July 3), 1906, (identical with those of the state prm^ 
ing office); for the navy department, December 28, 1906 (January 
10, 1907), (almost identical with those of the war department). 

To indicate the extent of modifications introduced in the law of 
June 9 (22), 1904, it is sufficient to say that of the 53 sections of the 
original law 17 sections remained unchanged; 18 sections were 
omitted, and 18 more or less modified, mostly in language, but 
somewhat in substance, wliile 14 new sections were added in place of 
those omitted. In general the rate of pensions and allowances 
remained the same, while the procedure was considerably modified, 
since the government industrial establishments are not subject to the 
supervision of the factory or mine mspectors. But in addition to 
these administrative details some important changes were made in 
the most essential provisions of the law. 

Complaint has been made that the denial of compensation to 
workmen guilty of "gross negligence, which can not be justified by 
the conditions and circumstances of work," was one of the weak 
points of the law of June 2 (15), 1903. Tliis exception was only 
partly preserved in the law of June 9 (22), 1904, concerning the 
employees of arsenals, which provided that when such accident 
results fatally the war minister may, under exceptional circum- 
stances, allow the regular pensions to the members of the family. 
In all later enactments in regard to other classes of government 
employees all references to ''gross neghgence" were omitted, and 
only injuries intentionally self-inflicted are excepted. 

No less important is the inclusion of the occupational diseases 
with the injuries compensated. This apphes to all classes of govern- 



2124 



REPORT OF THE COMMISSIONER OF LABOR. 



ment employees affected by the laws passed. No definite list of 
trade diseases is given, but disability due to all injuries caused by 
the work, or resulting from it, entitles the employee to a pension. 
As only permanent disability or death from trade diseases is com- 
pensated, temporary allowances are not given. Death resulting 
from such injury entitles the members of the family to pensions 
under the same conditions as death from accidental injury. 

This extension of the conception of accidental injury necessitated 
complete records of the health of each employee, obtained by means 
of medical examinations at the beginning of employment and also 
wherever an injury to health is claimed. On the other hand, to 
guard against the excessive payments of pensions due to injuries to 
health, a certam standard of health is required at the time of entering 
employment, and Usts of diseases disqualifying from employment in 
the governmental establishments have been pubHshed in connection 
with each extension of the law to certain classes of government 
employees. This list includes the employees of the arsenal, the 
establishments of the Crown, and of the navy department. 

1. Grave incurable disarrangements of nutrition, resulting from protracted and 
Berious diseases (malaria, scurvy, etc.), or from chronic poisonings by metals, alka- 
loids, alcohol, or other poisons. 

2. All acute contagious diseases, and chronic contagious diseases during the con- 
tagious period. 

3. Pronounced tubercular affections of lymphatic gland, scrofulous with e welling* 
hardening, suppuration, ulceration, and other tubercular affections. 

4. Elephantiasis in the pronounced stages of development. 

5. Leprosy. 

6. Chronic rheumatism, deforming inflammation of joints with hardening, contrac- 
tions, and other permanent results. 

7. Leucaemia, malignant anaemia, and bleeding diathesis. 

8. Addison's disease. 

9. Diabetic or nondiabetic polymresis. 

10. All malignant tumors. • 

11. Benign tumors, when interfering with work or with the function of important 
organs. 

12. Myx oedema. 

13. Lupus vulgaris, mycosis fungoides, multiple molluscum fibrosum, pemphigus 
chronicus, scleroderma, prurigo, ichthyosis, psoriasis vulgaris, and other chronic skin 
diseases accompanied with grave disturbances of general nutrition. 

14. Aggravated cases of pediculosis capitis, with ulcers and cruste. 

15. Chronic ulcers of syphilitic, scurvic, or tubercular origin. 

16. Chronic bone diseases, their complications and results; necrosis, caries, cold 
abscesses, affections of muscles, tendons, and cartilages. 

17. Aneurisms of large vessels. 

18. Epilepsy, hystero-epilepsy. 

19. Unilateral paralysis, paralysis of one upper or both lower extremities. 

20. St. Vitus' dance, paralysis agitans, and other chronic general twitching affec- 
tions. 

21. Chronic neuritis and neuralgia, interfering with work. 

22. Diseases of spinal cord and its membranes. 

23. Idiocy, insanity, and mental weakness of all stages or forms. 



CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2125 

24. Grave forms of hysteria and traumatic neurosis. 

25. Progressive muscular atrophy. 

26. Basedow's disease. 

27. Bronchial asthma. 

28. Scars of eyelids, keeping up inflammation of cornea or conjunctiva. 

29. Well defined granular conjunctivitis, with deep infiltration. . 

30. Well defined chronic catarrh of the conjunctiva with enlarged follicles and 
swelling. 

31. Adhesions between the eyelids, or between either and the eyeball in one or 
both eyes, when interfering with sight or with the free motion of the eyeball. 

32. Decrease of over one-half in the power of sight, notwithstanding correction by 
glasses, because of permanent changes in the eye. 

33. Permanent paralysis of the motor nerves of the eyelids or eyeballs. 

34. Purulent discharge from one or both ears, resulting from deep destructive afifec- 
tions of the middle ear. 

35. Complete deafness of both ears, or such limitation of hearing that the examined 
workman can not hear a low voice at a distance of 1 arsheen (2J feet) and a loud 
voice at a distance of 6 arsheens (14 feet). 

36. Loss of hearing and speech (deaf-mutes). 

37. Tumors of pharynx, larynx, or nose, when subject to bleeding, or interfering 
with deglutition or respiration. 

38. Organic diseases of larynx or trachea, interfering with speech, respiration, or 
deglutition. 

39. Stricture of oesophagus. 

40. Chronic catarrh or respiratory ducts, with failure of general nutrition: bron- 
chiectasis and well-defined pulmonary emphysema. 

41. Tuberculosis, chronic pneumonitis, and pleuritis. 

42. Organic diseases of heart, pericardium, aorta, ahd pulmonary arteries. 

43. Organic diseases of peritoneum, liver, epleen, stomach, intestines, kidneys, 
and other abdominal or pelvic organs, with disturbance of function and of general 
nutrition. 

44. Abdominal hernia of any degree. (Dilatation of the inguinal canal without 
protrusion of internal organs is not to be considered a hernia.) 

45. Prolapse of all layers of the rectum without pressure, rectal fistula, or stricture 
of rectum or anus. 

46. Abnormal anus. 

47. Diseases of the genito-urinary organs, leading to uncleanlineso. 

48. Diseases of vertebra, curvature of vertebra columns or pelvis, when interfering 
with work. 

49. Absence of both feet. 

50. Considerable dilatation of veins, with formation of many large knots, interfering 
with circulation or threatening the integrity of the walls of the blood vessels. 

51. Absence of one thumb, or two fingers on one hand, when interfering with work. 

52. Supernumerary fingers, curvature of fingers, contractions, or other deformities, 
when interfering with free action of hand. 

53. Prolapse of vulva and uterus. 

54. Grave affections of uterus or appendages, or the cellular tissue of the pelvis, or 
pelvic peritoneum. 

55. Pregnancy, during the last three months, and four weeks after childbirth. 

A modified list, much briefer and less severe in its restrictions, is 
applied to the two printing offices, where much less physical strength 
is demanded of the employees, because of the lighter nature of the 
work. The list includes, briefly: 



2126 



REPORT OF THE COMMISSIONER OF LABOR. 



Contagious diseases, and primarily syphilis and tuberculosis; and 
general noncontagious diseases, especially general disarrangenienta of 
nutrition because of chronic lead, alcohol, or other poisoning; 
tumors, malignant or benign; all mental diseases; organic or func- 
tional diseases of the central nervous system, organic heart diseases 
knotty dilations of vems and varicose ulcers ; such diseases of the 
respiratory ducts as interfere with respiration or speech, chronic 
pneumonia and pleurisy; purulent bronchitis and emphysema; such 
digestive diseases as have produced evident disturbances of nutri- 
tion; u-reducible hernia, or such as can not be supported by a truss; 
genito-urinary diseases which threaten to cause early working dis- 
ability; diseases of the bones, muscles, joints; chronic contagious 
eruptions, lupus of the face; such scars, or unhealed ulcers, as limit 
the mobility of members, blennorheic eye infections; trachoma and 
conjunctival scars; decrease of the power of sight; everted or uiverted 
eyelids; purulent otitis media; considerable decrease of sense of hear- 
ing. While the list is comprehensive, in the majority of diseases tlie 
addition of the qualifymg phrase 'Vhen interfering with the per- 
formance of duties" greatly reduces the stringency of the regulations 
and simply establishes the rule that only men physically able to per- 
form the work satisfactorily, and not likely to 'lose then- working 
ability m the near future, may be given employment. 

While the general law includes, in addition to workmen, the tecli- 
nical employees only, all laws in regard to government establish- 
ments include aU civil employees receiving a remuneration at a rate 
of not more than 1,500 rubles (S772.50) per annum. 

A change of some importance consists m granting to orphans who 
through illness or deformity, are incapacitated from earning a living' 
pensions for life instead of to the completion of the sixteenth year 
^ Payment of pensions for permanent disabUitv is discontmued dur- 
ing the time the injured is reemployed in the same establishment if 
the wages paid him are not smaller than before. When such wac^es 
are smaUer, the pension is equal to only two-thirds of the difference^ 

The pensions granted are paid irrespective of anv subsidies or pen- 
sions which the pensioner may receive from the Government or anvone 
else. 

The substitution of a lump-sum payment for the pensions is not 
permitted when the pension exceeds 24 rubles ($12.36) per annum 
It IS the practice in private industrial establishments to agree upon 
lump-sum payments, but these are not considered to be in the best 
interests of the workmen. 

The methods of administration of the laws have been considerably 
changed, since the government estabhshments are not subject to the 
]unsdiction of the factory or mine inspectors to whom the larger share 



1 



CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2127 

in the administration of the law of 1903 is intrusted. These func- 
tions are intrusted to the administrative officers of the establishments; 
a conimittee of three members is organized for this purpose \^'ith the 
superintendent of the estabhshment as chairman, who acts inde- 
pendently in case of emergency. Thus, notice of accident must be 
given and also apphcation for pensions or allowances made to him. 
He also grants allowances for temporary disabihty, the cost of medical 
treatment, or the funeral expenses, unless he prefei-s to refer them to 
the committee. Cases of permanent pensions for death or permanent 
disabihty, accompanied by all documentary evidence, must be 
referred to the committee, which renders a written decision, giving 
reasons for such, and the superintendent acts upon this decision. 
The procedure is different from that of the law of 1903, wliich requires 
friendly agreements between both parties, wliile here a purely admin- 
istrative order takes its place. The claimant can fUe objections to 
the decision witliin two months from the day of receiving notice and 
demand reconsideration of the case. The committee must act upon 
receiving such an objection, and must give an independent consider- 
ation of the case within thirty days. If stiU dissatisfied, the claimant 
may choose one of two ways: He may either carry the case to the 
head of the ministry in whose department he is employed or enter a 
suit agamst the Government. The use of one of these two methods 
prevents the employee from taking advantage of the other. Suits 
are entered against the Government in the name of the superintendent 
of the estabhshment. The essential feature of this system is the 
decentralization of the administration, with a right of appeal to the 
head of the department. 

STATISTICS OF THE OPEBATION OF THE LAW. 

The statistical information as to the apphcation of the law of 1903 is 
limited to the estabhshments subject to factory inspection^ and then 
including only the cases resulting fatally or in permanent disabihty. 
These data are presented in the following six tables. 

In the foUowmg table the cases wherem settlements have been 
effected in accordance with the law and have been certified by the 
factory mspectors are compared with the total number of cases reg- 
istered. The percentage has increased from 37.7 per cent in 1904, to 
78.8 per cent in 1905, and 90.6 per cent in 1906. This indicates a 
growmg frequency of peaceful settlements in the office of the factoiy 
mspectors— i. e., out of courts— though the low percentage of the year 
1904 may be explained by the delay in settlements, which has carried 
many cases over into 1905. The cases of partial disabihty involving 
small compensation, are most frequently settled peacefully and the 
fatal cases least frequently. 



2128 



REPORT OF THE COMMISSIONER OF LABOR. 



NUMBER OF ACCIDENTS REGISTERED AND NUMBER AND PERCENT OF CASES CER- 
TIFIED BY INSPECTORS, BY RESULT OF INJURY. 1904 TO 1906. 

[Source: Ministerstvo Torgovli i Promyshlennosti. Statistlches kia SvedeniaoResultatakh I'rimenenia 

Zakona 2 itinla 1903 goda.J 





1904. 


1905. 


1906. 


Result of injury. 


Cases 
regis- 
tered. 


Cases certified 
by inspectors. 


Cases 
regis- 
tered. 


Cases oertlfied 
by iuiipectors. 


Cases 
regis- 
tered. 


CsBM certifi«Mi 
by inspectors. 


t 


Num- 
ber. 


Per 
cent. 


Num- 
ber. 


Per 
cent. 


Num- 
ber. 


Per 
cent. 


Death 


382 
70 

5,783 


105 
17 

2.228 


27.5 
24.3 
38.5 


332 

59 

8,196 


197 

45 

6,524 


59.3 
76.3 
79.6 


371 

60 

10,296 


228 

46 

9,446 


61.5 


Total permanent disability 

Partial permanent disability — 


76.7 
91.7 


Total 


6,235 


2.350 


37.7 


8,587 


6,766 


78.8 


10,727 


9,720 


90.6 







In the following table are shown the numb<>r of cases for which 
annual pensions are actually granted and those for which the capital- 
ized value is paid instead of annual pensions. In the vast majority of 
cases settled (all but 8 per cent in 1906) the annual pensions have 
been capitalized. Such capitalization of the annual pensions is found 
to be particularly common in cases of partial disability (93 ])er cent 
in 1905 and 93.4 per cent in 1906) where the computed annual pension 
is often very low; it is agreed to in about half of the fatal cases, and 
in comparatively few cases of total permanent disability (31.1 per cent 
in 1905 and 28.3 per cent in 1906). This frequent capitalization of 
the pension into a lump-sum payment is considered an evil by most 
Russian authorities on the subject, especially in fatal cases. When 
the degree of partial disabihty is low, and the pension therefore 
amounts to only a few rubles a year, such capitahzation is justified, 
but in grave or fatal cases the employer may often force the employee 
to agree to a capitalization by refusing a peaceful settlement on any 
other conditions, for such capitalization at a sum equal to ten annual 
payments is often very advantageous to the employer. Within 
recent years, however, a considerable increase in the proportion of 
cases leading to pensions, rather than to lump-sum payments, has 
been noticed. From 7.9 per cent in 1906, it has increased to 12.5 per 
cent in 1907 and to 17.8 per cent in 1908. This may be explained 
by a gradual increase in the workmen's familiarity with the provi- 
sions of the law. 

The table also shows that in a great majority of cases (about two- 
thirds in round numbers) temporary disability allowances are granted 
before the degree of disability can be established. 



CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2129 

NUMBER AND PER CENT OF CASES IN WHICH WERE GRANTED ANNUAL PENSIONS, 
CAPITALIZED PENSIONS, AND ALLOWANCE FOR TEMPORARY DISABILITY, 1904 
TO 1908. 

[Source: Ministerstvo Torgovli J Promyshlennosti. Statlstlcheskia Svedenia o Resultatakh Primeoenia 
Zakona 2 iunia 1903 goda. Svod otchotov fabrichnykh inspectorov za 1908 god.] 



Result of Injury. 


Cases 

agreed 

to and 

certified. 


Cases In which 
annual pensions 
were granted. 


Cases in which 
pensions were 
capitalized. 


Cases in which 
temporary d i s - 
abihty allow- 
ances were 
grunted l>efore 
final settlement. 




Numl)er. 


Percent. 


Numlier. 


Per cent. 


Numl»er. 


Per cent. 


1904. 
Death ^... 


105 
17 

2,228 


55 

9 

142 


52.4 

52.9 

&4 


50 

8 
2,086 


47.6 
47.1 
93.6 


20 

7 

1,606 


19.0 
41.2 
72.1 


Total permanent disability 

Partial i>ennanent disability 


Total 


2,350 


206 


8.8 


2,144 


91.2 


1.633 


69.5 




1905. 

Death 


197 

45 

6,524 


91 

31 

454 


40.2 

68.9 

7.0 


106 

14 

6,070 


53.8 
31.1 
93.0 


33 
29 

4,626 


16.0 
64.4 
70.9 


Total permanent disability 

Partial permanent disal>ility 


Total 


6,766 


576 


8.5 


6,190 


91.5 


4.688 


69.2 




1906. 

Death 


228 

46 

9,446 


111 

33 

628 


48.7 

71.7 

6.6 


117 

13 

8,818 


51.3 
28.3 
93.4 


60 

30 

G.841 


25.2 
65.2 
72.4 


Total permanent disability 

Partial permanent disability 


Total 


9,720 


772 


7.9 


8,948 


92.0 


6,931 


71.2 




1907. 

Death 


a 213 

43 

10,076 


103 

22 

1,163 


45.8 
51.2 
11.5 


122 

21 

8,913 


54.2 
48.2 
88.5 


(«») 
(«») 
(«•) 




Total permanent disability 

Partial permanent disability 


Total 


a 10,332 


1.288 


12.5 


9,056 


87.5 


(*) 


(«>) 




1908. 
Death 


199 

42 

9,581 


121 

30 

1,596 


59.6 
71.4 
16.6 


82 

12 

7,983 


40.4 
28.6 
83.4 


(0) 




Total permanent disability 

Partial permanent disability 


Total 


«9,822 


1,747 


17.8 


8,077 


82.2 


(*) 


(6) 





o In 1907 in 12 cases and In 1908 in 4 cases some dependent relatives accepted pensions and some lump 
sums. For this reason the additions of pension rewards and capitalized rewards gives a larger total than 
the number of cases. The larger total was used in computing the percentages. 

ft No data available. 

In the following table are computed the average annual earnings, 
the total and average amount of computed pensions, and the average 
proportion of the pension to the wages. The legal rate of compensa- 
tion in cases of total permanent disability is two-thirds of the annual 
earnings, and this proportion is upheld in practically all cases. In the 
fatal cases the maximum compensation allowed is two-thirds, but 
this maximum is evidently not reached in a great number of cases, 
for the average proportion is less than one-half the annual earnings. 

The average pension is very low in cases of partial permanent dis- 
ability. It was only 8.1 per cent of the earnings in 1906, 7.8 per 
cent in 1907, and 8.8 per cent in 1908. The fact that the number of 
cases of partial disability in 1906 was more than four times what it 
was in 1904 would seem to indicate that lighter injuries are being 



2130 



REPOET OF THE COMMISSIONER OF LABOR. 



compensated. The average is nevertheless remarkably low, when 
it is remembered that the minimum degree of disability practically 
used in the medical certificates is 5 per cent, \\ hich would correspond 
to a pension of 3.3 per cent, and that in the vast majority of per- 
manent injT^ries the degree of disability is much higher. In fact, 
out